Government borrowing finances fiscal expansion via supply-side measures

Steps:

• Government borrows from public to fund extra spending: this is deficit-financed fiscal policy.
• Spending targets apprenticeship training: this enhances workforce skills, a supply-side policy.
• Fiscal policy adjusts aggregate demand through spending; supply-side boosts long-term supply capacity.
• Combined use: fiscal enables the supply-side initiative.

Why A is correct:

• Fiscal policy includes government borrowing to increase spending (per Keynesian framework); supply-side policy invests in human capital like training to shift aggregate supply rightward.

Why the others are wrong:

• B: Monetary policy controls money supply and interest rates via central bank, not direct government borrowing.
• C: Supply-side alone ignores fiscal mechanism of borrowing-financed spending.
• D: Duplicate of B; no monetary tools involved.

Final answer: A