Studied by 11 peoplebetter quality of goods
In deregulation, competition tends to lead to lower prices + ________ and services.
Free market
________ SSP: policies which increase competitiveness and ________ efficiency.
Privatisation
________ leads to more efficiency and lower prices.
Competition
________ is important in an increasingly globalised marketplace.
Demand side theory
________: is built in the idea that economic growth is stimulated through demand.
Supply side policies
________ are government attempts to increase productivity and efficiency in the economy.
Free market SSP
policies which increase competitiveness and free-market efficiency
Privatisation
set state owned assets to private sector, improves incentives
deregulation
allows new firms to enter the market open monopolies to competition
income tax cuts
greater incentives to work longer hours
removing regulations
reduce power of trade unions, minimum wage and regulations
free trade agreements
reduce tariff barriers and obstacle to trade
reduce welfare benefits
increase incentive to get a job
Interventionist SSP
government intervention to overcome market failure
tax credit
could allow firms to not pay taxes from retained profit spent on R+D
Demand side theory
is built in the idea that economic growth is stimulated through demand
→ main goal is to continue consumer spending on products → keep the economy afloat
market based supply policies
the reduction of household income taxes and corporate taxes will have expansionary fiscal effects
Free market SSP
policies which increase competitiveness and free-market efficiency
Interventionist SSP
government intervention to overcome market failure
Improved economic growth
SSP will increase sustainable rate of economic growth by increasing LRAS, which enables higher rate of economic growth without causing inflation
Note
Flashcard