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Year 11 Exam  >  Year 11 Tests  >  Test: Supply-Side Policy - Year 11 MCQ

Test: Supply-Side Policy - Year 11 MCQ


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10 Questions MCQ Test - Test: Supply-Side Policy

Test: Supply-Side Policy for Year 11 2024 is part of Year 11 preparation. The Test: Supply-Side Policy questions and answers have been prepared according to the Year 11 exam syllabus.The Test: Supply-Side Policy MCQs are made for Year 11 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Supply-Side Policy below.
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Test: Supply-Side Policy - Question 1
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Which of the following is NOT a goal of supply-side policies?

Detailed Solution for Test: Supply-Side Policy - Question 1
Supply-side policies aim to mitigate inflationary pressures rather than increasing inflation.
Test: Supply-Side Policy - Question 2
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What effect does a successful implementation of supply-side policies have on economic growth?

Detailed Solution for Test: Supply-Side Policy - Question 2
Successful supply-side policies lead to an expansion in potential national output, accelerating economic growth.
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Test: Supply-Side Policy - Question 3
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How do supply-side policies impact unemployment rates?

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Effective supply-side policies typically result in a reduction in unemployment rates as increased output demands more labor.
Test: Supply-Side Policy - Question 4
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What does disinflation of supply-side policies?
Detailed Solution for Test: Supply-Side Policy - Question 4

Disinflation refers to a slowdown in the rate of inflation, often achieved through enhanced supply.

Test: Supply-Side Policy - Question 5
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Which measure is NOT typically considered a supply-side policy?
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Supply-side policies usually involve decreasing direct taxes to stimulate economic activity.
Test: Supply-Side Policy - Question 6
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What aspect of income distribution can be worsened by supply-side policies?
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Supply-side policies can exacerbate income inequality by potentially lowering wages and reducing government tax revenue.
Test: Supply-Side Policy - Question 7
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How do supply-side policies affect the current account balance?
Detailed Solution for Test: Supply-Side Policy - Question 7
Enhanced supply tends to reduce prices, making exports more competitive and improving the current account balance.
Test: Supply-Side Policy - Question 8
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Which economic indicator is directly boosted by successful supply-side policies?
Detailed Solution for Test: Supply-Side Policy - Question 8
Successful supply-side policies lead to an expansion in real Gross Domestic Product (rGDP).
Test: Supply-Side Policy - Question 9
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What potential drawback is associated with the implementation of supply-side policies?
Detailed Solution for Test: Supply-Side Policy - Question 9
Income distribution can worsen due to reduced worker wages and changes in tax policies under supply-side reforms.
Test: Supply-Side Policy - Question 10
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Why might the implementation of supply-side policies face challenges?
Detailed Solution for Test: Supply-Side Policy - Question 10
There are significant time lags between implementing supply-side policies and realizing their economic benefits, such as from education and training initiatives.
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