Supply-side policy

Question 1

Define the term austerity

Answer 1

Government policies aimed at retrieving public sector debt by cutting spending and increasing taxes

Question 2

Define Crowding in

Answer 2

The concept where public sector investment leads to increased private sector investment

Question 3

Define crowding out

Answer 3

The concept where increased public sector investment might reduce private sector investment by increasing interest rates or absorbing financial resources

Question 4

Define Demand-side economics

Answer 4

Economic policies that focus on boosting demand in the economy, typically through tax cuts and government spending

Question 5

What is the endogenous growth theory

Answer 5

The concept that growth is primarily the result of internal factors such as investment in human capital and innovation.

Question 6

What is fiscal space (headroom)

Answer 6

The financial capacity of a government to borrow and spending without jeopardising fiscal sustainability

Question 7

What is modern supply-side economics

Answer 7

A contemporary approach to supply side economics that includes state intervention to boost economic growth and productivity.

Question 8

Define productivity

Answer 8

The efficiency with which goods and services are produced, often measured in output per hour of labour.

Question 9

Define supply side economics

Answer 9

Economic policies aimed at increasing the supply of goods and services, often through tax cuts and deregulation

Question 10

What is up-skilling

Answer 10

Improving the skills and qualifications of the workforce to increase productivity and economic growth.