a) Policies

• supply-side policy

• policy aimed at increasing LRAS

• the two types of supply-side policy

• interventionist

• market-based

• interventionist policy

• the use of government intervention to increase LRAS

• market-based policy

• the reduction of government intervention to liberate the free market and increase market efficiency

• the aims of supply-side policy

• state how each aim increases LRAS

• create employment incentives

  • increases the quantity of labour

• reform the labour market

  • increases the quantity/quality of labour

• promote firm competition

  • increases the quality of capital

• interventionist supply-side policies that create employment incentives

• infrastructure projects

• apprenticeship schemes/subsidised employment

• market-based supply-side policies that create employment incentives

• reducing direct taxes

• reducing unemployment benefits

• interventionist supply-side policies that reform the labour market

• government expenditure on education

• housing for occupational mobility

• market-based supply-side policies that reform the labour market

• reducing minimum wage

• reducing trade union power

  • voter turnout

  • notice period

  • secondary action

• interventionist supply-side policies that promote firm competition

• antimonopoly laws

  • exclusive deals

  • predatory pricing

  • tying agreements

• preventing large mergers

• market-based supply-side policies that promote firm competition

• trade liberalisation

• deregulation/privatisation