how the UK government can use supply side policies to facilitate economic growth
QUESTION: Explain how the UK government can use supply side policies to facilitate economic growth.
1. a detailed explanation of basic growth theory.
Explain and expand on the following points:
– National Income (Gross Domestic Product)
– The 3 methods of measuring GDP (output method, income method, expenditure method)
– Government objectives (Economic growth, low unemployment, low inflation, balance of payments equilibrium)
– The business cycle and its 4 phases (upturn, expansion, peaking out, recession)
– fluctuations in actual growth
FOCUS ON THE UK GOVERNMENT WHEN EXPLAINING AND GIVING EXAMPLES
2. Explain what supply side policies are and why the UK government would choose to implement new ones.
Discuss the following Free-market supply-side policies and their effects on the public. such as:
– Income tax cuts
– Flexible labour markets
– Reducing welfare benefits
– Free trade agreements
Discuss the following interventionist supply-side policies. such as, higher government spending on education, healthcare, housing and communication.
3. Short conclusion suggesting policies for the UK government that would best promote economic growth.
Use the following sources for references along with others.
– Business Economics 2nd Edition (2013) , Andrew Gillespie
– Economics for Business, 7th Edition
John Sloman, Dean Garratt, Jon Guest,Elizabeth Jones
– Parkin, Powell & Matthews (2015): Economics 9th Edition. Pearson