Supply Side Policies Flashcards
Supply side policies
Aim to improve the economies overall productive capacity
Example of supply side polices
Investment in education and training
Business economic cycles
The observed pattern of increases and decreases in economic growth ( measured by % change in GDP) over time
What is a subsidy
A sum of money granted by the government to help an industry or business to keep prices low
What is a subsidy also known as
Government incentive
What are typical UK subsides
Job retention scheme (wage subsidy)
Government grants for businesses employing youth and long term jobless people
Subsidies for construction workers/ companies for example to build low cost housing
Benefits of subsidies
Lowering prices and controlling inflation
A greater supply of goods
Preventing the long term eclipse of buildings
