💼 Pre-MBA Exam Prep

Supply-side economics focuses on:

A Government spending
B Increasing production capacity through tax cuts, deregulation, and incentives for businesses
C Demand management
D Price controls

✓ Correct Answer: Option B

Supply-side: policy tools to increase aggregate supply — tax reduction (incentivize work/invest), deregulation (reduce business costs), infrastructure investment. Shift LRAS right → growth.

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