as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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compare and contrast the economic consequences of supply-side and demand-side economic policies
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supply-side economic policies focus on increasing the productive capacity of the economy, usually through tax cuts and deregulation, while demand-side economic policies focus on increasing the aggregate demand for goods and services through government spending and triggering consumption by cutting taxes and interest rates. supply-side policies are aimed at increasing the potential output of the economy and thus reducing price inflation, while demand-side policies aim at increasing aggregate demand and thus increasing price inflation. furthermore, supply-side policies are generally seen as more effective in the short-term, while demand-side policies can have more benefits in the medium and long-term.
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