3.2.4.3 Supply-Side Policies video

What is the primary goal of supply-side policies?

• Decrease government spending

• Increase productive capacity

• Increase aggregate demand

• Reduce interest rates

Which of the following is NOT a type of supply-side policy?

• Demand-side

• Market-based

• Interventionist

• Fiscal

What is a key characteristic of interventionist supply-side policies?

• Reducing government role

• Deregulation

• Increasing government spending

• Privatization

Which of the following is an example of government spending on infrastructure?

• Reducing trade union power

• Building new schools

• Lowering income tax

• Privatization

What is the purpose of subsidies given to firms in interventionist policies?

• Reduce inflation

• Increase consumer spending

• Promote investment

• Increase exports

What is a primary goal of market-based supply-side policies?

• Decrease competition

• Increase government intervention

• Reduce government role

• Increase taxes

Which of the following is a market-based supply-side policy?

• Government spending on healthcare

• Building new roads

• Subsidizing education

• Lowering corporation tax

What is the effect of reducing minimum wages in market-based policies?

• Decrease productive efficiency

• Increase government spending

• Increase long-run costs

• Reduce long-run costs

Which policy aims to boost competition across the economy?

• Privatization

• Government spending on education

• Increasing minimum wages

• Subsidizing firms

What is a major issue with the effectiveness of supply-side policies?

• Guaranteed success

• High inflation

• No guarantee of success

• Immediate results