Supply-side policies

Investment in human capital may include:

• healthcare

• education

• plumbing

• amusement parks

Demand-side and supply-side policies can have an effect on each other in real life:

• true

• false

• ceteris paribus

• real life does not exist

Anti-monopoly laws are a part of:

• Research and development (R&D)

• Investment in human capital

• Provision and maintenance of infrastructure

• Direct support for businesses/industrial policies

Reduction in household income tax may bring about

• increase in AD in the short run

• increase in AS in the long run

• incentive to work more

• increase income inequality

Which one is NOT a market-based supply-side policy?

• trade liberalization

• privatization

• reduction in corporate tax

• R&D

Which one may be a limitation for both market-based and interventionist, supply-side policies?

• time lags

• loss of government revenue

• negative consequences for the environment

• worsening working conditions

Which one is not an aim of supply-side policies?

• improved competition and efficiency

• reduced inflation

• increased labour market flexibility

• increased unemployment