Question

Market-oriented supply-side policies will always be more effective in promoting economic growth than demand-side policies.” To what extent do you agree with this statement?

Answer 1

Solution:

Yes, I greatly agreed with the statement that Market-oriented supply-side policies will always be more effective in promoting economic growth than demand-side policies. It is mainly because Supply side policies are very useful for improving the long run growth in productivity. In other hand Demand-side policies cannot increase the rate of growth in long-run trend. Only during a recession Demand side policies are better than supply side policies, other than that the above statement is true.