If supply-side policies succeed, less output is produced at every price level.

Question 39 options:

True

False

false

False

Explanation:

Supply-side policies aim at increasing productivity. The government outlines measures that promote the supply-side to achieve sustainable growth without causing inflation. The policies aim at enhancing the production capacity of an economy. They increase competition by improving the quantities and qualities of the factor of production.

Supply-side policies do not promote low levels of production. They argue that an increase in production will result in a high demand for goods and services. An increase in demand will generate more employment opportunities and promote rapid economic growth.