Long-term growth by increasing the economy’s productive capacity

Improving competition and efficiency

Reducing labour costs and unemployment through labour market flexibility

Reducing inflation to improve international competitiveness

Increasing firms’ incentives to invest in innovation by reducing costs

policies to encourage competition, such as:

policies to encourage competition, such as: — deregulation

policies to encourage competition, such as: — privatization

policies to encourage competition, such as: — trade liberalization

policies to encourage competition, such as: — anti-monopoly regulation

labour market policies, such as:

labour market policies, such as: — reducing the power of labour unions

labour market policies, such as: — reducing unemployment benefits

labour market policies, such as: — abolishing minimum wages

Unit 3: Macroeconomics

incentive-related policies, such as:

incentive-related policies, such as: — personal income tax cuts

incentive-related policies, such as: — cuts in business tax and capital gains tax

education, training

improving quality, quantity and access to health care

research and development

provision of infrastructure

industrial policies

Demand-side effects of supply-side policies

Supply-side effects of fiscal policies

Constraints on supply-side policies

Constraints on supply-side policies — Market based—equity issues, time lags, vested interests, environmental impact

Constraints on supply-side policies — Interventionist—costs, time lags

Strengths of supply-side policies

Strengths of supply-side policies — Market based—improved resource allocation, no burden on government budget

Strengths of supply-side policies — Interventionist—direct support of sectors important for growth

Strengths and limitations in promoting growth, low unemployment, and low and stable rate of inflation

The successes and constraints of fiscal policy in achieving low un objective, for a chosen country.

The economic and social impacts on different stakeholders of monet