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O-LevelEconomicsGovernment and the macroeconomy2281/12 · May/June 2024 · Q201 Mark

Which statement about supply-side policy is correct?

AIt aims to increase the productive potential of the economy.
BIt aims to increase total demand in the economy.
CIt involves changes in the equilibrium foreign exchange rate.
DIt involves changes in the rate of interest.

✓ Correct answer

A: It aims to increase the productive potential of the economy.

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About this question

Topic
Government and the macroeconomy, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source
O-Level Economics, May/June 2024 Paper 1 Variant 2, question 20.

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