Macro Policies

Question 1

What are the two types of supply side policy

Answer 1

1. Intervenionist
2. Market based

Question 2

Types of Market-based SSP

Answer 2

Tax Reform
* Lower income tax
* Lower corporation tax

Labour Market Reform
* Reduce benefits
* Reduce min wages
* Reduce trade union power

Competition policy
* Privitastion
* Deregulation
* Trade Liberalisation

Question 3

Types of Intervenionist SSPs

Answer 3

• Gov spending on education/training
• Gov spending on infrastructure
• Subsidies to firm to promote investment

Question 4

Fiscal policies