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7 Cards in this Set
- Front
- Back
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Supply side policy |
Action by the government intended to increase the amount that firms are willing to supply at any given price level |
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Productivity |
Measure of output per worker |
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7 examples of market based policy |
Back (Definition) |
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8 examples of interventionist based policies |
Back (Definition) |
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Deregulation |
The removal of rules that make it difficult to start or expand a business |
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4 benefits of supply side policies |
-enables an increase in long run potential growth -reduces inflation by increasing capacity -reduces structural unemployment by equipping workers with skills -increased productivity makes firms more internationally competitive |
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3 limitations of supply side policies |
-time lags, take years to affect LRAS -a lack of AD means it won’t have any impact, spare capacity -cost of implementing |
