Supply Side Flashcards
1
Q
What are supply side policies used to improve
A
The production output of an economy
2
Q
How do u know supply side policies are successful
A
If when demand rises it leads to greater GDP without inflation
3
Q
What are the different policies that are part of supply side
A
Improving in education standards Increase training Reducing benefits Encouraging enterprise Reduce monopoly power
4
Q
What would encouraging education and training do
A
A well educated and trained workforce is more productive
5
Q
What does reduced benefits do
A
Incentive to go to work
6
Q
What would encouraging enterprise do
A
With tax allowances they would get more capital allowance to be more productive
7
Q
What would reducing monopoly power do
A
Monopolies would have the incentive be more productive
8
Q
Cons of supply side policies
A
Can take a long time
Can face resistance from vulnerable groups in society
