Supply side policy

Question 1

What is supply side policy

Answer 1

Government attempts to shift long and short run AS

Question 2

What is the primary goal of SSP

Answer 2

Increase LRAS

Question 3

What are the 2 types of SSP

Answer 3

Free-market polices
Interventionist policies

Question 4

Describe privatisation

Answer 4

Selling state owned assets to the private sector

Question 5

Describe deregulation

Answer 5

Reducing regulations faced by business to allow for easier production

Question 6

Describe Tax reforms

Answer 6

Reduce the tax burden on businesses

Question 7

Describe Competition policy

Answer 7

Ensuring fair competition in the markets

Question 8

What is the main types of interventionist policy

Answer 8

Investment
Subsidy
Immigration control

Question 9

How can the factors of production be utilised more effectively

Answer 9

Land - New technology
Labour - better education/training
Capital - Better technology
Enterprise - reducing regulation

Question 10

How can the factors of production be increased

Answer 10

Land - Invade other countries/make use of unused land
Labour - Allow entry from more migrants
Capital
Enterprise - incentives start ups

Question 11

Limitations of privatisation

Answer 11

Often threatens the quality and quantity of public services due to cost cutting

Question 12

Limitations of deregulation

Answer 12

Often brings about safety concerns

Question 13

Limitations of tax reform

Answer 13

Lower taxes reduce the amount that government can spend

Question 14

Limitations of competition policy

Answer 14

If rules are too strict may limit busnesses

Question 15

Limitations of improving labour flexibility

Answer 15

Reduces average wage causing a decrease in C

Question 16

Describe improving labour flexibility

Answer 16

Makes it easier to hire and fire employees