Which statement about supply-side policy is correct?
It aims to increase the productive potential of the economy.
It aims to increase total demand in the economy.
It involves changes in the equilibrium foreign exchange rate.
It involves changes in the rate of interest.
A
Which supply-side policy measure would most likely cause the greatest increase in labour productivity in a country?
a decrease in the rate of corporation tax
a reduced top rate of income tax
improved education and training provision
privatisation of a state-owned industry
C
What does a successful supply-side policy increase in an economy?
the level of unemployment
the production possibilities
the rate of inflation
the rate of interest
B