Supply Side Policy

Question 1

Define supply side policies

Answer 1

Supply side policy measures are designed to increase AGGREGATE SUPPLY and hence increase productive potential

Question 2

What does the supply side policies seek

Answer 2

To increase the quality and quantity of resources and raise efficiency of products and factor markets

Question 3

Supply side policy measures

Answer 3

• improving education and training
• cutting direct taxes and benefits
• reforming trade unions
• privatization

Question 4

Define progressive tax

Answer 4

A progressive tax is a tax that takes a higher proportion of the income of the rich than the poor
Eg income tax

(More from rich people)