4.2.5.2 Supply-side policies NOTES

What are supply-side policies primarily aimed at?

• Managing consumer demand

• Directly controlling inflation rates

• Influencing the overall supply of goods and services

• Regulating international trade

Which of the following is a result of supply-side improvements?

• Increased government spending

• Immediate fiscal policy adjustments

• Enhancements in the economy's capacity to produce

• Short-term economic downturns

What can supply-side policies include to foster competition?

• Promoting research and development

• Increasing import tariffs

• Centralizing economic planning

• Expanding welfare programs

How can supply-side policies impact potential output?

• By limiting exports

• By incentivizing productivity and investment

• By increasing consumer spending

• By raising interest rates

What effect can supply-side policies have on unemployment?

• Reducing structural unemployment

• Increasing short-term joblessness

• Decreasing wages

• Expanding public sector employment

How might supply-side policies mitigate inflation?

• By reducing exports

• By enhancing productivity and efficiency

• By increasing money supply

• By imposing price controls

What role do supply-side policies play in external performance?

• Improving export competitiveness

• Decreasing foreign investments

• Limiting global partnerships

• Increasing import quotas

What is a key focus of interventionist supply-side policies?

• Reducing government oversight

• Addressing market failures and investing in human capital

• Cutting social welfare programs

• Privatizing state-owned enterprises

Which of the following is a microeconomic effect of supply-side policies?

• Adjusting consumer protection laws

• Modifying international trade agreements

• Altering the central bank's policies

• Changes in market structure and firm behavior

What macroeconomic effect can supply-side policies have?

• Increasing the budget deficit

• Reducing technological innovation

• Stimulating economic growth and reducing unemployment

• Lowering educational standards