Evaluating Supply-Side Policies

This video of a live revision webinar for AS macro evaluates supply-side policies designed to improve macroeconomic performance and address structural policy problems. The main focus is on the UK economy.

Main aims of supply-side policies

1. Improve incentives to look for work and invest in people’s skills
2. Increase labour and capital productivity
3. Increase occupational and geographical mobility of labour to help reduce the rate of unemployment
4. Increase investment and research and development spending
5. Promote more competition and stimulate a faster pace of invention and innovation to improve competitiveness
6. Provide a strong platform for sustained non-inflationary growth
7. Encourage the start-up and expansion of new businesses / enterprises especially those with export potential
8. Improve the trend rate of growth of real GDP to help support improved living standards and regional economic balance
9. Improve the trade balance in goods and services
10. Increase per capita incomes to help progress in cutting poverty and lifting living standards