Which Statement Is Consistent with the Supply-Side Theories

question 63

Multiple Choice

Which statement is consistent with the supply-side theories?

• A) The Bank of Canada should use monetary policy only to control the rate of inflation.
• B) The government should promote full employment and production.
• C) The government should periodically increase the minimum wage and unemployment insurance benefits.
• D) Tax cuts influence the aggregate supply significantly.

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Definitions:

Temporary Assistance

Short-term aid or support provided to individuals or families in need, often from governments or charitable organizations.

Needy Families

Refers to low-income families that require financial assistance or support services to meet basic living needs.

Welfare System

A government program designed to support individuals and families in need through financial aid and social services.

Countercyclical Payments

Financial payments made by the government to individuals or businesses during economic downturns to stimulate the economy.