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Supply side policy

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Question 2

Extract A: Government of Aurelia launches £3.5bn 'Tech-Future Skills' Initiative

The Aurelian national debt has risen as a result of targeted government funding to restructure the economy towards high-value digital services following a structural slowdown in manufacturing.

The Minister for Skills recently announced a £3.5bn package designed to modernise the workforce, retrain displaced workers, and secure long-term productivity gains. Key elements of this program include:

  • The 'Digital Leap' fund: a £1.8bn allocation to subsidise intensive 9-month software development and data analytics boot camps for adults aged 22–45 currently in low-skilled employment.
  • A £1,500 incentive grant paid to small and medium enterprises (SMEs) for every new digital apprentice they hire.
  • Free technical retraining courses in green energy technologies, designed to prepare workers for infrastructure modernization projects.
  • Funding for 500 new Career Progression Advisers stationed at regional employment hubs to match jobseekers with emerging technical sectors.

Extract A refers to a number of 'Tech-Future Skills' training initiatives announced by the Aurelian government.

Using an appropriate diagram, explain what impact this is likely to have on long-run economic growth in Aurelia.

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Markscheme

Supply side policy Questions

  1. A Level
  2. /Economics
  3. /Supply side policy

37 exam-style questions on OCR A Level Economics Supply side policy. Each one has a worked solution and a mark scheme showing where the marks go.

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