Which of the following would be considered a supply-side policy ?

Related Mcqs:

1. Which of the following would be considered a supply-side policy ?

   A. An increase in the minimum wage that would cause consumer spending to increase
   B. investment tax credits for businesses to encourage investment
   C. Restrictions placed on the amount that can be imported.
   D. An increase in government spending that would lead to increased aggregate demand

2. According to supply side economists as tax rates are reduced labour supply should increase. This implies that ?

   A. There is no income effect when tax rates are changed
   B. The income effect of a wage change is greater than the substitution effect of a wage change.
   C. There is no substitution effect when tax rates are changed
   D. The substitution effect of a wage change is greater than the income effect of a wage change

3. According to supply-side economists, as tax rates are reduced, labor supply should increase. This implies that ?

   A. there is no income effect when tax rates are changed
   B. the income effect of a wage change is greater than the substitution effect of a wage change.
   C. there is no substitution effect when tax rates are changed
   D. the substitution effect of a wage change is greater than the income effect of a wage change

4. Supply side policies are considered effective in ?

   A. Increasing government expenditure
   B. reducing taxation
   C. increasing the money supply
   D. encouraging technological progress

5. Which of the following is not a supply side measure ?

   A. Increased training
   B. Providing more information
   C. Helping individuals to move location to find work
   D. Increasing spending on existing industries

6. According to supply-side economists if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?

   A. aggregate supply will increase , aggregate demand will decrease
   B. aggregate supply will increase, aggregate output will increase and the price level will decrease
   C. aggregate supply will increase aggregate output will increase and the price level will increase
   D. both aggregate supply and demand will increase and the price level will increase

7. Which of the following policy actions by a central bank is likely to increase the money supply ?

   A. Increasing the refinancing rate
   B. All of these will increase the money supply
   C. Buying government bonds in open market operations
   D. Increasing reserve requirements

8. According to the Phillips curve, in the short run, if policy makers choose an expansionary policy to lower the rate of unemployment ?

   A. The economy will experience an increase in inflation
   B. The economy will experience a decrease in inflation
   C. Inflation will be unaffected if price expectations are unchanging
   D. None of these answers

9. Suppose a wave of investor and consumer optimisms has increased spending so that the current level of input exceeds the long-run natural rate If policy makers choose to engage in activist stabilization policy they should ?

   A. decrease government spending Which the shifts the aggregate demand curve to the left
   B. decrease taxes, which shifts the aggregate demand curve to the right
   C. decrease taxes, which shifts the aggregate demand curve to the left
   D. decrease government spending which shifts the aggregate demand curve to the right

10. In the early eighties, the Federal Reserve pursed a tight monetary policy. All else being equal. the impact of that policy was to interest rates in the United States relative to those in Europe and cause the dollar to _______ against European currencies?

    A. decrease; depreciate
    B. decrease; appreciate
    C. increase; depreciate
    D. increase; appreciate