Th4.1: Supply Side Policies Flashcards
1
Q
What will they want to improve?
A
productivity and efficiency or quality
2
Q
What measures could they use to improve these?
A
competition policy, improving labour or improving infrastructure
3
Q
What can they seek and encourage companies to do?
A
exploit opportunities in export markets overseas
4
Q
What will they focus resources on?
A
industries where the UK has a real comparative advantage, accepting some industries should close
5
Q
What is the problem with this?
A
this will be politically unpopular and will cause job losses in the short term
6
Q
There are much longer term solutions but these will…
A
solve the balance of payments issue in the long term, rather than temporarily as with aggregate demand
