Which of the Following Is Not a Supply-Side Policy to Cure

question 77

Multiple Choice

Which of the following is not a supply-side policy to cure inflation?

• A)Reduced marginal tax rates.
• B)Incentives to encourage saving.
• C)Lower interest rates.

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Definitions:

Long-run Equilibrium

A state where all factors of production in an economy are utilized efficiently, market supply equals demand, and no economic forces are pushing for change.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, representing excess revenue over the opportunity cost of resources employed.

Competitive Equilibrium

A state in a market where supply equals demand, leading to an optimal distribution of goods and services among participants.

Constant-cost Industries

Industries where the costs of production do not change significantly with an increase or decrease in the quantity produced.