Supply-side policy is designed to: Move the economy form a point inside the prod

Question

Supply-side policy is designed to: Move the economy form a point inside the production possibilities curve to a point on the curve and shift the aggregate supply curve to the left. Move the economy from a point inside the production possibilities curve to a point on the curve and shift the aggregate supply curve to the right. Shift the production possibilities curve outward and shift the aggregate supply curve to the left. Shift the production possibilities curve outward and shift the aggregate supply curve to the right. Fiscal policy includes: Open market operations. Deregulation. Infrastructure development. Discretionary government spending. Suppose University Bank has zero excess reserves. If the required reserve ratio decreases, the: Bank's assets will increase. Bank will not have enough required reserves. Bank will be able to make more loans. Money multiplier will decrease. Monetary stimulus will fail if: Bonks are reluctant to lend money. The money demand curve is fairly steep. The investment demand curve is fairly flat. All of the above. The business cycle is defined as: Alternating periods of economic growth and contraction. Changing wages and prices. An effort to reach full employment. The growth of real GDP.

Explanation / Answer

Answer 3:
Supply side policies are government's attempts to increase productivity and shift the Long run AS curve to right or the PPF outwards.
Option D

Answer 4:
Option D. It includes taxes and government spending.

Answer 5:
Option C. any decline in the reserve ratio will increase the excess reserves.

Answer 6:
Option A.

Answer 7:
Option A.

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