Question

supply side policies are effective only in the​

Answer 1

Explanation:

Supply-side policies can help reduce inflationary pressure in the long term because of efficiency and productivity gains in the product and labour markets. They can also help create real jobs and sustainable growth through their positive effect on labour productivity and competitiveness.

LONG-TERM is the right answer

Answer 2

Explanation:

Effectiveness of supply side policies

Benefits of Supply-Side Policies

In theory, supply-side policies should increase productivity and shift long-run aggregate supply (LRAS) to the right. Shifting AS to the right will cause a lower price level. By making the economy more efficient, supply-side policies will help reduce cost-push inflation.