Suppose politicians attempt to lower inflation by increasing worker productivity. In this case, politicians are using:

Question

Quizplus · Accepted Answer

Increasing worker productivity is a supply-side policy aimed at increasing the economy's ability to produce more output with the same amount of resources, thus reducing the cost per unit of output and lowering inflation. This is not a fiscal or monetary policy, as it does not involve changes in government spending, taxation, or interest rates. It is also not an expansionary growth policy, as its goal is to reduce inflationary pressures rather than stimulate economic growth.

Suppose Politicians Attempt to Lower Inflation by Increasing Worker Productivity