Supply Side Policy Flashcards
1
Q
What is supply side policies
A
Any gov policies which aim to increase the AS in the economy
2
Q
What is the interventionist policy
A
When the gov increases its intervention in the economy
3
Q
What are the 2 types of supply side policy
A
Interventionist and market based policy
4
Q
What is market based policy
A
When the gov decreases its intervention in the economy
5
Q
Health care spending
A
77bn annual loss in productivity due to illnesses
Some NHS hospitals spent 2x expenditure on toilet paper which doesn’t help productivity
6
Q
Hs2
A
50bn
68 minutes transporting 68000 passengers
Could lead to crowding out as gov borrowing increases, IR for private sector increases, SRAS shifts inwards
