Those that believe that the recent period of slow growth will pass and that higher levels of growth can be created through conservative policies focus on ones that would cause

Question

Quizplus · Accepted Answer

Conservative policies tend to focus on increasing aggregate supply, through measures such as reducing regulations and taxes on businesses. This is believed to stimulate investment and innovation, leading to higher levels of growth in the long run. Increases in aggregate demand, such as through fiscal stimulus or monetary policy, may provide a short-term boost to economic activity, but are less likely to lead to sustained growth. Increases in interest rates or decreases in aggregate supply would have the opposite effect, dampening economic activity rather than stimulating it.

Those That Believe That the Recent Period of Slow Growth