CIMA BA1 · Chapter 2 · Question 9 of 10
Which of the following is an example of a supply-side policy?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Reforming labour markets and expanding training to raise productivity
Explanation
Supply-side policies aim to increase the productive capacity of the economy (shifting aggregate supply), for example by improving labour skills, flexibility and incentives. The other options work mainly through aggregate demand.
More Macroeconomic policy and the business cycle MCQs
- Q1Which of the following is NOT normally regarded as one of the main objectives of government macroeconomic policy?
- Q2Which of the following combinations represents an expansionary fiscal policy?
- Q3A sharp rise in the world price of imported oil causes the general price level in an economy to increase. This is best described as:
- Q4Workers in a region lose their jobs because the local manufacturing industry has been replaced by automated production elsewhere, and…
- Q5The original Phillips curve suggested that: