Supply side policies

• What does the term "supply-side policy" refer to?

  Policies aimed at increasing economic supply
• What is the focus of fiscal policy in the UK?

  To manage government spending and taxation
• What are some key supply-side challenges the UK faces?

  • Low productivity
  • Skills shortages
  • Infrastructure deficits
  • High taxation levels
  • Regulatory burdens
• What is the purpose of a diagram in supply-side policy?

  To show the impact of successful policies
• What are market-based supply-side policies?

  • Tax cuts to incentivize investment
  • Deregulation to enhance competition
  • Improving labor market flexibility
  • Encouraging entrepreneurship
  • Enhancing infrastructure
• What are interventionist supply-side policies?

  • Government investment in education
  • Infrastructure development projects
  • Research and development funding
  • Subsidies for key industries
  • Training programs for workers
• How can supply-side policies help the economy's LRS?

  By increasing potential output and efficiency
• What does LRS stand for in economic terms?

  Long-Run Aggregate Supply
• What are the benefits of using supply-side policies to achieve macroeconomic objectives?

  • Increased economic growth
  • Lower unemployment rates
  • Enhanced productivity
  • Improved living standards
  • Greater international competitiveness
• What are the drawbacks of using supply-side policies?

  • Time lag for effects to materialize
  • Potential for increased income inequality
  • Risk of inflation if demand outpaces supply
  • High costs of implementation
  • Political resistance to reforms
• What does "privatization" mean in economic terms?

  Transfer of ownership from public to private sector
• What does "regulation" refer to in economic policy?

  Rules set by authorities to control activities
• What is the UK productivity puzzle?

  Stagnation in productivity growth despite economic recovery