Which of the Following Is Consistent with the Supply-Side Theories

question 73

Multiple Choice

Which of the following 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.

---

Definitions:

Bioecological Model

A theoretical model that explores the complex interactions between individuals and their environment, highlighting the multiple layers of influence on human development.

Individual

A single, distinct person distinguished from others by unique characteristics, thoughts, feelings, and actions.

Family

A social unit or group of people related by blood (consanguinity), marriage (affinity), or adoption, bound by shared values, traditions, culture, and love, often living together and supporting one another.

Community

A group of people living in the same place or having a particular characteristic in common, or a feeling of fellowship with others.