b) Strengths and weaknesses

d) strengths and weaknesses of supply-side policies

strengths of interventionist policy

• eliminates market failure

• often improves quality of life

weaknesses of interventionist policy

• risk of government failure

• government expenditure → budget deficit + public debt

strengths of market-based policy

• higher quality goods/services

• no inflation/reduced inflation → sustainable economic growth

weaknesses of market-based policy

• deregulation → negative externalities

• reduced workers rights + increased income inequality