Expansionary supply-side policies increase productive capacity and aggregate supply

Steps:

• Define expansionary supply-side policy as measures that enhance productivity, labor participation, or efficiency to shift aggregate supply rightward.
• Assess option A: Reducing training spending cuts human capital investment, shrinking supply capacity.
• Assess options B, C, D: Each boosts productivity, incentives, or efficiency, aligning with expansionary goals.
• Conclude A fails to expand supply, making it the non-example.

Why A is correct:

• Supply-side policies expand via increased investment in skills; reducing training spending directly opposes this by lowering workforce productivity per economic theory on human capital.

Why the others are wrong:

• B: Boosts technological advancement, raising output per worker and aggregate supply.
• C: Cuts unemployment benefits to encourage labor force participation, increasing available workers.
• D: Privatizes industry to improve efficiency and reduce bureaucratic costs, enhancing productive potential.

Final answer: A