Supply Side Policies Flashcards
(4 cards)
1
Q
What are supply side policies?
A
government policies to increase productive capacity in the economy
2
Q
Name 5 ways supply side policies can positively impact the economy
A
lower inflation
lower unemployment
improved trade and balance of payments
improved economic growth
greater equality
3
Q
Name the 8 supply side policies
A
privatisation
deregulation
increase in education + training
cuts in welfare state benefits
information
reducing taxes
trade union reform
improving transport and infrastructure
4
Q
What are the drawbacks of supply side policies
A
they are expensive and takes time and poverty may increase due to lower benefits and minimum wage
