Supply Side Policy Flashcards
1
Q
Supply side policy
A
Policies that improve production potential/ capacity of an economy
Illustrated by outward shift of LRAS
2
Q
Market led policy
A
Designed to make markets work better and give private sector more freedom
3
Q
State policy.
A
Gov intervention in markets to overcome different types of market failure
4
Q
Supply side on LR and SR
A
Can affect both but usually focus LRAS
5
Q
Evaluation
A
Is long run aggregate supply so time lags
6
Q
Recent government supply side policies
A
Privatisation of Royal Mail
7
Q
Objectives of supply side policy
A
Improved incentive for work Labour and capital productivity Mobility of labour Increased investment Promote competition
8
Q
Private sector supply side policies objectives
A
Expand role of market policy
Cutting gov spending
Lower business taxes
Lower income tax rates
9
Q
State (government driven) supply side policy
A
State investment in public services and infrastructure
