Policies that make production more efficient are favored by _____________

The correct answer reflects that both supply-side and demand-side economists appreciate policies that enhance production efficiency. Supply-siders focus primarily on boosting production capacity through tax cuts, deregulation, and incentives for businesses, which they believe will lead to economic growth. Efficient production aligns with their philosophy as it leads to increased output and lower prices for consumers.

On the other hand, demand-siders emphasize the importance of consumer spending and overall demand in driving economic growth. They support policies that stimulate production efficiency as this can help meet consumer demand more effectively and lead to higher levels of employment and income.

Thus, both economic schools recognize the importance of increased efficiency in production as a critical factor in fostering economic stability and growth. Their shared belief in the benefits of efficient production is what makes this option the correct answer.