4.5 Supply-side policies

Question 1

what are 3 supplys ide policies

Answer 1

• improving education
  -income tax cuts
• public sector invesetments

Question 2

explain imprvoigne eduaction

Answer 2

the government can invest in education and skills training to improve the quality and quantity of labour to increase productivity.

Question 3

explain income tax cuts

Answer 3

reducing income tax will increase people’s willingness to work more and earn more, helping increase the supply in the economy.

Question 4

explain public sector invesetments

Answer 4

investments in infrastructure such as transport and communication can greatly help the economy by making the flow of resources quick and easy, and facilitate faster growth.