Intevetuonist Supply Side Policy Flashcards
What are the 4 examples of interventionist supply side policy’s
Education and training
Infrastructure projects
Subsidies for R and D
Intervention in labour markets
Education and training
Increases workers skill level
Education and training evaluative points
In short run supply of labour might fall if workers go into training
Brain drain - migration of highly skilled educated individuals from one country to another to search for better opportunities or working conditions
Infrastructure projects
Additional capital will create capital stock of whole economy
Infastructure projects evaluative points
Costs may increase
Mobility only works for people who can afford it
Subsidies for r and d
Incentivises developments for new technology
Subsidies for r and d Evaluate points
Success is not guaranteed
Intervention in labour markets
Increasing incentive to work
Intervention into labour markets evaluative points
Real wage unemployment
