One significant criticism of the major proposition of supply-side economics during the period 1980-1988 was that:
A) The tight monetary policy of the Federal Reserve slowed the growth of the economy and caused a severe recession
B) Major sectors of the economy failed to achieve optimal efficiency from increased regulation by government
C) There was a significant increase in the rate of unemployment over the period
D) Growth in the productive capacity of the economy did not exceed the historical pace

Question

Quizplus · Accepted Answer

One significant criticism of the major proposition of supply-side economics during the period 1980-1988 was that growth in the productive capacity of the economy did not exceed the historical pace. Despite the policy changes aimed at incentivizing businesses to invest and produce more, the actual growth rate of the economy did not increase significantly during this period. This raised concerns about the effectiveness of supply-side economics in promoting long-term economic growth.

One Significant Criticism of the Major Proposition of Supply-Side Economics