Supply side policies

Question 1

supply side policies

Answer 1

policies to improve the productive potential within an economy

Question 2

Free market orientated supply side policies

Answer 2

privatisation—sell state owned assets to private sector

deregulation–alows new firms to enter market

income tax cuts–grearter incetive to work longer hours

flexible labour marktets–reduce power of trade unions

free-trade agereements–reduce tarrif barriers and other obstacles to trade

reduce welfarre benefits–increase incetive to get ajob

Interventionist–increase public sector investment
education–increase fundigns to schools and universities–improve labour producitivty

Question 3

Deregulation ons upply side of economies

Answer 3

lower costs to produce–increase set ups –more enterprise

fianncial sector deregulation–more lending –more investment

Question 4

effects of privatisation on supply side

Answer 4

privatisation==increase amount of firms profit driven increase I increase capital stock
increase productive potential

increase busienss increasse enterprise

Question 5

increasing nmw on supply side

Answer 5

higher wage
12.21 april 2025
greater incetive to work
increase work force size

Question 6

effects of reducing trade union power on supply side

Answer 6

less trade union power
wages rise slower
not too expesnive to hire workers
more start ups

Question 7

increase g on education and training

Answer 7

116 bn in2 021
more skills and qualifications
icnreas e labour productivity and p pot
increase lras

more individuals confidnet to start business
increase enterprise
increase p pot

Question 8

ncrease g on ifnrastructure and trnasport

Answer 8

317 bn in 2021 increase in health less sick days increase labour pdouctivitiy increase p pot
increase LRAS

transport 10bn still in making 16 + years
more businesses attracted

Question 9

Evaluation of increased G

Answer 9

depends on debt levels

increase g borrow from private sector
firms profits fall
fall in I

Time Lag
more g increase budget deficit
more debt

Question 10

evaluation of privatisation

Answer 10

increase I automation
more polution
depends on eocnomic cycle may not invest

Question 11

evaluations of deregulation

Answer 11

fall in health and safery–increase risk of injuries

increase labour productivity

Question 12

evaluations of lower tax rates

Answer 12

lower tax rev
budjet deficit worsens
crowding out
lower ad boost ad and more inflation less fdi + less investment

Question 13

ssps are ineffcitive without

Answer 13

adequate AD
japans lost decade