Government policies that focus on increasing production rather than demand are called ?
Correct answer: C. supply-side policies
- A. fiscal policies
- B. monetary policies
- C. supply-side policies
- D. incomes policies
Explanation
Supply-side policies aim to expand the economy’s productive capacity, such as by improving skills, incentives, technology, or infrastructure. Fiscal and monetary policies mainly influence aggregate demand, while incomes policies regulate wages and prices.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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