2.6.3 - Supply Side Policies Flashcards
1
Q
What are Supply Side Policies?
A
Measures taken by the govt designed to raise productive capacity of the economy (shift LRAS right)
2
Q
Labour Market Policies - Reducing Income Tax
A
Reduced marginal rates of income tax, higher tax thresholds or larger personal allowances would provide greater incentives to work.
2
Q
Labour Market Policies - Reducing Welfare Benefits
A
Work could be made mor attractive than welfare benefits.
3
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10
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