T5 SS Policies Flashcards
What are the types of supply side policies
Free market and intervensionist
Intervensionist supply side policies are where
Where the government are involved
Free market SS Policies are where
The market themself aim to improve competiton, efficiency, etc without the help of the government
What are some intervensionist SS Policies(3)
Pub Sector investment Eductation and training Geo subsidise Exchange rate management Changes to wages Regional Policies
What are some free market SS Policies(3)
Privatisation Deregulation and removal of red tapes Income tax cuts Flexible labour markets Free trade agreements Reduce welfare benefits
What are some macroeconomic benefits of supply side policies(4)
Lower cost push inflation
Lower frictional and structural unemployment
Economic growth
Better balance of payments
What are the main objectives of supply side policies(4)
Incetivise people to work Increase productivity Icrease the mobility of labour More competition Increase investmment and R+D Non inflationary growth New enterprise
How can intervensionist policies reduce unemployment(3)
Better education and training
Increased job information
More subsidise
How can free market policies reduce unemployment(3)
Lower welfare benefits
Reduced trade union power
Increased labour market flexibility
How can SS polciies increase international competition(4)
Lower inflation
Higher interest rates
Possible specialisation
Better infrastructure
What can SS policies do if they work(5)
Make a better trade off with inflation and unemployment
Allow the economy to have better response to shocks
Increase living standards
Reduce the natural rate of unemployment
Improve competition
What are some SS policy draw backs
Time lags
Dependent on the level of AD growth
Could increase wealth gaps and divides
Could be hard to sustain
good way to think ab what free market polciies are
they are ways where the gov is involved less and let the market be freerer, eg reduced reg reduced tarrifs, reduced min wages and taxes
which side is it where gov intervention and involvemnt in the market is reduced
free market policies
How to think ab supply side polciies and examples
Look at issues with the 4 factors and then ways to deal with them
