Public Policy and Economic Growth

Multiple Choice

What is an example of expansionary fiscal policy?

• Increase in Government spending

• Selling government bonds

• Decrease the money supply

• Raising taxes

Multiple Choice

Which of the following would most likely lead to economic growth?

• Decreases in workforce education level.

• Increases in physical capital.

• Reductions in technology usage.

• Declines in natural resources available.

Multiple Choice

How do supply-side policies impact aggregate supply and output in the short run?

• They primarily affect price levels and inflation.

• They increase aggregate supply, aggregate demand, and output.

• They decrease aggregate supply, aggregate demand, and output.

• They have no impact on aggregate supply, aggregate demand, and output.