5.4 Supply-side policy

Question 1

Define the term “Infrastructure”

Answer 1

Buildings and constructions that support society and economic activity.

Question 2

Define the term “Supply-side policy”

Answer 2

Government policy tools designed to increase aggregate supply.

Question 3

List 3 cons of SSPs

Answer 3

Answers may include :
- No guarantee of success
- Time lags
- Cost
- Negative stakeholder impacts
- Output gap
- Need for targeted SSPs