The government of Lydon is considering two supply side policies.
| Policy | Forecast result |
|---|---|
| Reduce direct tax on workers' earnings | 85,000 people who are currently outside the labour force enter employment |
| Reduce tax on business profits | Annual private-sector investment in machinery rises by £2.6bn |
Analyse how the government's proposed policies could raise economic growth. Use the data in the table in your answer.
121 exam-style questions on OCR GCSE Economics 3.7 Supply side policies, covering 3.7.1 What are supply side policies and 3.7.2 Costs and benefits of supply side policies. Each one has a worked solution and a mark scheme showing where the marks go.