Economics · Unit 3: Macroeconomics

EC3.7 — Supply-side policies

Economics · SL / HL · syllabus-mapped notes

1. EC3.7.1

   Goals of supply-side policies

   Explain what supply-side policies aim at, productive capacity, competition, efficiency and labour market flexibility.

2. EC3.7.2

   Market-based policies, including:

   Explain the market-based supply-side policies, from encouraging competition to labour market and incentive-related measures.

3. EC3.7.3

   Interventionist policies, including:

   Explain the interventionist supply-side policies, education and training, health care, research and development, and infrastructure.

4. EC3.7.4

   Demand-side effects of supply-side policies

   Explain how supply-side policies also affect aggregate demand.

5. EC3.7.5

   Supply-side effects of fiscal policies

   Explain how fiscal policy also affects aggregate supply.

6. EC3.7.6

   Effectiveness of supply-side policies

   Evaluate supply-side policies against their constraints and strengths in promoting growth, low unemployment and stable inflation.