Which Statement Is Consistent with the Supply-Side Theories

question 121

Multiple Choice

Which statement is consistent with the supply-side theories?

• A) When there is a recession, the Bank of Canada should decrease the money supply.
• B) A shift in aggregate supply leads to a permanent increase in the natural rate of output.
• C) The government should periodically increase the minimum wage and unemployment insurance benefits.
• D) Aggregate demand does not shift in the short run.

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