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How does a supply-side policy differ from a supply-side improvement?
A
- A policy is a fall in aggregate demand.
- An improvement is a rise in the price level.
- Improvements can result only from higher government spending.
B
- A policy is any private-sector decision.
- An improvement is government intervention in markets.
- Improvements can only result from changes in taxation.
C
- A policy is deliberate government intervention.
- An improvement is any actual gain in productive potential.
- Improvements can result from private-sector action or new technology.
D
- A policy is any increase in productive potential.
- An improvement is deliberate government intervention.
- Improvements can result only from public-sector action.
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2.5.2 Supply-side policies Flashcards
22 flashcards on AQA A Level Economics 2.5.2 Supply-side policies: the key terms, economic models and case studies you need to recall for Paper 1, Paper 2 and Paper 3.