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Question 1

Supply-side policies

Answer 1

tools that improve the productive potential of an economy

Question 2

Supply-side improvements

Answer 2

Structural long-term productivity improvements (performance / competitiveness)

Question 3

SSP Examples

Answer 3

Tax reduction, reduced trade union power, improve education, reduce welfare expenditure

Question 4

SSI Examples

Answer 4

Natural birth increase, increased entrepreneurship, increased private sector investment

Question 5

Market-led policies

Answer 5

Markets function better, private sector has more freedom

Question 6

Government intervention

Answer 6

Overcome market failures, address inequality issues

Question 7

Impact of SSI On real output

Answer 7

Increase production, increase quality

Question 8

Impact of SSI on price level

Answer 8

Increase in AS causes increase in AD (demand-pull inflation is avoided) instead cost-push inflation occurs

Question 9

Impact of SSI on employment

Answer 9

Mobility improvement, reduction in frictional and structural employment, capital can replace workers