Which of the following supply-side efforts did the Clinton administration embrace?
A)Expansion of the money supply.
B)Additional investment in education and skills training.
C)Reduction in immigration of highly skilled workers.
D)Increase in taxes on capital gains.

Question

Quizplus · Accepted Answer

The Clinton administration pursued an expansionary fiscal policy that involved additional investment in education and skills training to improve the productivity of the workforce and increase the potential output of the economy. This is a supply-side effort that aims to increase the economy's capacity to produce goods and services in the long run. The other choices, expansion of the money supply, reduction in immigration of highly skilled workers, and increase in taxes on capital gains, do not fit the supply-side strategy that the Clinton administration pursued. Expansion of the money supply is a demand-side policy that aims to stimulate spending and boost economic growth in the short run, while reducing immigration and increasing taxes on capital gains can hurt the supply of skilled labor and capital, respectively, and lower the economy's potential output.

Which of the Following Supply-Side Efforts Did the Clinton Administration