agg supply policies

Question 1

environmental policy

Answer 1

are supply-side government measures designed to reduce environmental damage; for example carbon emissions reduction scheme and renewable energy targets

Question 2

productive capacity

Answer 2

is the economies physical limit or potential to produce goods and services when all resources are used to maximum efficiency. PC may be enhanced by increased efficiency, increased participation rates and worker motivation

Question 3

microeconomic reform

Answer 3

microeconomic reform involves initiatives introduced by governments in order to improve efficiency, reduce costs and ultimately make the Australian economy more internationally competitive by focusing on the supply side of the economy and increasing the nations productive capacity

Question 4

free trade agreements

Answer 4

FTAs are designed to reduce the barriers to trade between two or more countries, which are in place to help protect local markets and industries. Trade barriers typically come in the form of tariffs and trade quotas.

Question 5

trade liberalisation

Answer 5

involves the progressive reduction of tariffs, subsidies, and import quotas, and a shift towards the idea of free trade where there is an increase in the number of bilateral trade agreements.

Question 6

aims of aggregate supply policies

Answer 6

ag supply policies are government policies aimed at encouraging a firm or industry to engage in structural reform that is designed to improve efficiency and inc productive capacity of the economy.