Supply-side Policies Flashcards
1
Q
Free-market supply-side policies
A
involve policies to increase competitiveness and free-market efficiency.
2
Q
Interventionist supply-side policies
A
involve government intervention to overcome market failure.
3
Q
benefits
A
lower inflation
lower unemployment
improved economic growth
improved trade and balance of payments
4
Q
examples of free-market policies
A
privatisation
deregulation
income tax cuts
flexible labour markets
5
Q
examples of interventionist policies
A
public sector investment
education
housing supply
health spending
6
Q
limitations of supply-side policies
A
productivity growth depends largely on private enterprise and trends in technological innovation
supply-side policies can be counter productive - job insecurity
in a recession
time
