Supply Side Policies

Question 1

How can they work?

Answer 1

Deregulation - involves getting rid of rules imposed by the government that can restrict efficiency and competitiveness in a market.

Privatisation- more efficient and less wasteful many economists believe

Flexibility of labour

Question 2

What is a supply side policy?

Answer 2

Aim to shift aggregate supply to the right - they aim to increase the total amount of firms willing to supply at a particular price