Which of the following is most consistent with supply-side policy?
A)The Workforce Investment Act,which increased funds for skill training.
B)The increase in the interest rate six times during 1999-2000 by the Fed.
C)The decrease in the growth of the money supply in 1994.
D)The Budget Enforcement Act of 1990.

Question

Quizplus · Accepted Answer

Supply-side policy focuses on increasing the production and supply of goods and services in the economy. The Workforce Investment Act, which increased funds for skill training, is consistent with this objective as it aims to increase the productivity and efficiency of the workforce, which can lead to an increase in supply. The other options do not directly address increasing the productive capacity of the economy. The increase in the interest rate (B) is a monetary policy tool used to regulate inflation and stabilize the economy, while the decrease in the growth of the money supply (C) is a monetary policy tool used to control inflation. The Budget Enforcement Act of 1990 (D) is a fiscal policy tool used to reduce the budget deficit.

Which of the Following Is Most Consistent with Supply-Side Policy