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2.5 Fiscal policy and supply-side policies

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Question 19

Which of the following is an interventionist supply-side policy designed to reduce the natural rate of unemployment by targeting structural unemployment?

Deregulating regional planning laws to encourage housing construction and improve geographical mobility of labor

Establishing government-funded vocational retraining academies in regions experiencing industrial decline

Reducing the standard rate of income tax to increase the incentive for inactive individuals to enter the workforce

Lowering the national minimum wage to reduce real-wage classical unemployment

2.5 Fiscal policy and supply-side policies Questions

  1. A Level
  2. /Economics
  3. /2.5 Fiscal policy and supply-side policies