3.7 Supply-side policies

• What is the aim of fiscal and monetary policy?

  To influence supply-side policies
• How do supply-side policies affect the economy?

  They enhance the productive ability of the economy
• What is a key aspect of supply-side policies?

  Specialization in producing goods and services
• What is the impact of privatization in supply-side policies?

  It aims to improve efficiency and productivity
• What is one goal of education and training in supply-side policies?

  To enhance workforce skills
• How do supply-side policies relate to minimum wage?

  They can influence labor market dynamics
• What is a drawback of supply-side policies?

  They can lead to income inequality
• What is the effect of reducing taxes on supply-side policies?

  It encourages investment and economic growth
• What is a potential consequence of increased competition in product markets?

  Lower prices for consumers
• How does immigration relate to supply-side policies?

  It can increase the labor supply
• What is the relationship between childcare and supply-side policies?

  Childcare support can enhance workforce participation
• What is a common criticism of supply-side policies?

  They may disproportionately benefit the wealthy
• What is the role of government in supply-side policies?

  To create an environment conducive to growth
• How do supply-side policies aim to improve economic performance?

  By increasing productivity and efficiency
• What are the main components of supply-side policies?

  • Tax reductions
  • Deregulation
  • Privatization
  • Investment in education and training
  • Encouragement of competition
• What are the potential drawbacks of supply-side policies?

  • Income inequality
  • Reduced public services
  • Increased budget deficits
  • Short-term economic instability
• How can supply-side policies be implemented effectively?

  • By balancing tax cuts with public investment
  • Ensuring regulations promote competition
  • Supporting education and workforce development