Supply-Side Policy

Question 1

4 labour market measures?

Answer 1

1. Lower rates of income tax
   = Laffer curve
2. Reduce state welfare benefits+’welfare to work’
3. Education and Training
4. Trade Union Reforms= reducing power as belief it only increases labour costs, reduces market flexibility+international competitiveness

Question 2

What are the 5 product market measures?

Answer 2

1. Privatisation= greater productive efficiency
2. Competition policy
3. Deregulation= removal of barriers to entry+red tape
4. Entrepreneurship= loan guarantees+lower corporation tax for start-up businesses
5. Capital spending

Question 3

Supply side?

Answer 3

Aims to make markets more competitive and efficient, increasing productive potential (shifting LRAS right)
Fiscal supply side= Gov spending