Question:

MacroEconomics - Subsidy?

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a government subsidy to the producers of a product:

1)Reduce Product Supply

2)Increase product supply

3)Reduce product demand

4)Increase product demand

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  1. Answer is 2. Increase product supply


  2. 2)Increase product supply

    Subsidy to the producers means that they may supply more for the same price.
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