Supply-Side Policy to Reduce Inflation Would Focus on

question 46

Multiple Choice

Supply-side policy to reduce inflation would focus on

• A)Decreasing the money supply.
• B)Decreasing the interest rates to encourage investment.
• C)Increasing the incentives to produce goods and services.
• D)Raising marginal tax rates to reduce aggregate demanD.Actions such as tax cuts and deregulation will increase AS,thereby leading to a reduction in inflation.

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Definitions:

Property, Plant, Equipment

Tangible assets owned by a company used in operations and not intended for resale, such as buildings, machinery, and vehicles.

Cash Dividends

Distributions of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.

Balance Sheet

A financial statement that summarizes a company’s assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was put into use.