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6 Cards in this Set
- Front
- Back
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Factors that cause changes in level of consumption |
- wealth effect - inflation (anticipatory buying) - rate of interest -expectations |
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Demand side causes of u/e |
-Cyclical unemployment -expenditure (gov) based u/e - deindustrialisation - investment bases u/e |
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Supply side u/e |
-frictional u/e -voluntary u/e -structural e.g technological, regional |
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Solution to supply side u/e? |
Occupational training for workforce |
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Supply side fiscal policy |
-labour market incentives This increases voluntary employment, therefore increasing productive capacity Or Cut taxes - work harder - productive capacity -infrastructure -reduce corporate tax -entrepreneurship eg loan |
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Supply side policy |
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