Supply-Side Policy

Question 1

State the different types of supply-side policies.

Answer 1

• Improve Q&Q of FOP
• Reduce cost of UCOP
• Improve mobility of FOP
• Increase efficiency and remove barries to competition and trade in product markets

Question 2

State the supply-side policies to improve quantity of FOPs.

Answer 2

• Raising retirement age.
• Loosening immigration policy.
• Reducing income tax.

Question 3

State the supply-side policies to improve quantity of capital.

Answer 3

• Reducing corporate tax rates.
• Reduce restrictions on capital flows.
• Govt. spendng on infrastructure.

Question 4

State the supply-side policies to improve quality of FOPs.

Answer 4

• Direct provision of education.
• Subsidising skills upgrading. (SkillsFuture)

Question 5

State the supply-side policies to improve quality of capital.

Answer 5

• Policies that encourage R&D.

Question 6

State the supply-side policies to reduce UCOP.

Answer 6

• Improve productivity of workers.
• Controlling prices.
• Controlling wages.

Question 7

State the supply-side policies to improve mobility of FOPs.

Answer 7

• Govt. subsidies for skills upgrading.

Question 8

Can supply-side policies solve DD-deficient unN?

Answer 8

DD-deficient unN is more effectively solved through use of demand management policies which target root cause of this type of unemployment, which arises due to insufficient AD.

SSP is more suited to reduce structural unemployment through the use of education and retraining.