When Supply-Side Policy Is Successful in Pushing Up Equilibrium Real

question 174

Multiple Choice

When supply-side policy is successful in pushing up equilibrium real Gross Domestic Product (GDP) , the reason is that the policy generates

• A)a decrease in aggregate demand.
• B)an increase in aggregate supply.
• C)a decrease in employment.
• D)a decrease in saving.

---

Definitions:

Slowing

The reduction in speed or rate of an activity or process.

Current

A directional movement of water, which can be caused by temperature, salinity differences, wind, or tidal forces in the ocean.

Sediment

Particles or fragments of rocks, minerals, or organic materials that have been transported and deposited by wind, water, or ice.

Standing Body

Refers to a body of water, such as a lake or pond, that is contained in a basin and does not flow like rivers or streams.