Policies to reduce unemployment by reducing union power, tax cuts, reductions in unemployment benefit and investment subsidies are examples of ?
Correct answer: B. Supply-side policies
- A. Keynesian policies
- B. Supply-side policies
- C. Monetarist Policies
- D. Classical policies
Explanation
These measures improve incentives to work, hire and invest by reducing labour-market rigidities and business costs. That makes them supply-side policies rather than demand-management or purely monetarist policies.
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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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