Supply side policies

Question 1

What are some interventionist examples?

Answer 1

• Increased government spending on education and infrastructure

Question 2

What are supply side policies?

Answer 2

Long run growth and productivity
Free market = believe resources are allocated efficiently and gov intervention is harmful
Interventionist = believe gov should intervene

Question 3

What are free market examples?

Answer 3

• reduce restrictions (trade union power and minimum wage)
• increase incentive (reduce income tax and corporate tax and reforms to welfare benefits)
• promote competition (privatisation and deregulation)