2.5.2 Supply-side policies

• What are supply-side policies aimed at increasing?

  Productive capacity
• Microeconomic policies under supply-side policies aim to improve the efficiency of individual markets and firms.


  True
• Order the goals of supply-side policies from most to least significant.

  1️⃣ Shifting the Long-Run Aggregate Supply (LRAS) Curve to the Right

  2️⃣ Boosting Long-Term Economic Growth

  3️⃣ Reducing Inflationary Pressures

  4️⃣ Improving Productivity

  5️⃣ Enhancing Competitiveness
• Reducing inflationary pressures is a key goal of supply-side policies.


  True
• Match the supply-side policy with its primary impact on the economy.

  Microeconomic Policies ↔️ Improve efficiency of markets

  Macroeconomic Policies ↔️ Enhance productive potential
• What is the primary goal of supply-side policies?

  Long-term economic growth
• Supply-side policies are categorized into microeconomic and macroeconomic policies.


  True
• What are two key goals of supply-side policies?

  Productive capacity and growth
• Supply-side policies aim to increase the productive capacity of the economy and promote long-term economic growth
• What are the two main categories of supply-side policies?

  Microeconomic and macroeconomic
• Match the type of supply-side policy with its example:

  Microeconomic policy ↔️ Deregulation

  Macroeconomic policy ↔️ Education investments
• Microeconomic policies improve the efficiency of individual markets and firms, which shifts the long-run aggregate supply (LRAS) curve to the right
• How do supply-side policies reduce inflationary pressures?

  Shifting LRAS to the right
• Enhancing competitiveness is one of the long-term goals of supply-side policies.


  True
• Supply-side policies are government policies aimed at increasing the productive capacity of the economy and long-term economic growth.
• What is the objective of macroeconomic policies under supply-side policies?

  Improve productive potential
• Why is shifting the Long-Run Aggregate Supply (LRAS) curve to the right a key goal of supply-side policies?

  Increase potential output
• The goal of supply-side policies is to shift the Long-Run Aggregate Supply (LRAS) curve to the right to reduce inflationary pressures.
• What is the impact of microeconomic policies on the LRAS curve?

  Increases LRAS
• Supply-side policies can have a significant impact on the economy through improving its efficiency and productivity.
• Supply-side policies boost long-term economic growth by increasing the economy's productive capacity.

  True
• The main goal of supply-side policies is to shift the long-run aggregate supply (LRAS) curve to the right
• Match the type of supply-side policy with its objective:

  Microeconomic policies ↔️ Improve market efficiency

  Macroeconomic policies ↔️ Increase productive potential
• The overarching aim of supply-side policies is to reduce inflationary pressures by shifting the LRAS curve to the right.


  True
• Microeconomic policies focus on enhancing market efficiency, which in turn increases the economy's LRAS.


  True
• What are the two main channels through which supply-side policies impact the economy?

  Efficiency and potential
• Boosting long-term economic growth is a key goal of supply-side policies by increasing the economy's productive capacity.


  True
• Microeconomic policies such as privatization improve the efficiency of markets and firms, which shifts the LRAS curve to the right