Supply Side
Macroeconomic supply-side policies
1) Supply-side policies designed to increase productivity, competition and incentives.
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2) Free market policies:
• deregulation of product and labour markets
• privatisation
• reduction in taxation
• changing the levels of welfare payments
• cutting the costs of bureaucracy for firms.
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3) Interventionist policies:
• investment in education, training and skills
• incentives to encourage investment: tax incentive or subsidies
• infrastructure investment
• finance for business start-ups
• regional policy.
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4) Strengths and weaknesses of different supply-side policies.
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