Supply side policies Flashcards
1
Q
supply side policies
A
- action taken to increase long run productive potential
- in theory are the “perfect” method
2
Q
interventionalistic policies
A
- gov spending on education & training
- better infrastructure
- subsidies to promote investment
3
Q
free market policies
A
- lower income tax
- lower corporation tax
- reducing welfare benefits & min wage
4
Q
evaluation of supply side policies
A
- no guarantee of success
- expensive
- time lags (take time to see effects)
