Supply-side Policies Flashcards
1
Q
Name the main 4 supply-side policies:
A
Competition policy (reducing barriers into entry eg deregulation).
Increasing incentives to work, save and invest (lower taxes and welfare reform).
Creating more flexible labour markets.
Policies to encourage investment in infrastructure and R&D.
2
Q
How does investment in infrastructure shift LRAS to right?
A
Because investment in things such as transport, communications and local facilities allow businesses to operate efficiently.
3
Q
How does the creation of a more flexible labour market shift LRAS to right and how is it achieved?
A
.Achieved through occupational mobility which can be increased by education and training.
