ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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privatisation, free trade and progressive taxes
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increased welfare payments, lower taxes and greater education
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industrial reform, corporatization, free trade and deregulation
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lower taxes, subsidies, tariffs and quotas to increase consumer confidence
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Detailed explanation-1: -Examples of Supply-Side Policies Lower tax rates on interest earned from savings. Higher tax credits on investment. Less government regulation, including the minimum wage. Privatizing public industries.
Detailed explanation-2: -Supply-side fiscal policies include the curtailment of borrowing rates, tax reduction, and deregulation of industries.
Detailed explanation-3: -For instance, supply-side economics gives tax cuts to the wealthy and businesses to encourage them to invest and spend money on business initiatives. In contrast, demand-side economics focuses on providing tax cuts to lower and middle-class individuals to encourage them to make more purchases on consumer goods.
Detailed explanation-4: -Spending on education and training is likely to improve labour productivity and is an essential supply-side policy option, and one favoured by recent UK governments. A government may spend money directly, or provide incentives for private suppliers to enter the market.