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A Supply-Side Policy Approach in Figure 8

Question 80

Multiple Choice

A supply-side policy approach in Figure 8.3,given AD<sub>1</sub> and AS<sub>1</sub>,to achieve both lower prices and more output would be to A) Increase the growth of the money supply. B) Reduce marginal tax rates and government regulation in an effort to move AS<sub>1</sub> to AS<sub>2</sub>. C) Wait until natural market forces establish full employment. D) Increase aggregate spending. A supply-side policy approach in Figure 8.3,given AD1 and AS1,to achieve both lower prices and more output would be to


A) Increase the growth of the money supply.
B) Reduce marginal tax rates and government regulation in an effort to move AS1 to AS2.
C) Wait until natural market forces establish full employment.
D) Increase aggregate spending.

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