Macro 8 - Supply side policies

Question 1

Supply side policies

Answer 1

Government policies aimed at increasing the productive potential of the economy and shifting LRAS to the right

Question 2

Market based supply side policies

Answer 2

Policies which are designed to remove anything which prevents the free market system working efficiently

Question 3

Interventionalist supply side policies

Answer 3

Policies designed to correct market failure, where the government intervenes in the market