Supply-side policy

Which supply-side policy would lead to higher output in the long run?

May/June 2015

In recent years, governments have needed to deal with the impact of a global recession. Which supply-side policy could have been used to boost economic growth?

May/June 2015

In 2013, the Singapore Government was worried that the economy could slip into recession. It was putting into place a set of supply-side policy measures to lift productivity, prevent a recession and meet its other economic objectives. It was also trying to reduce the international value of the Singapore dollar.

May/June 2015

A government plans to raise skill levels by providing free training to young people leaving school from age 16 until they are 18 years old. It suggests funding this by taxing firms' profits. Which policies are described by these proposals?

May/June 2017

Which one is a supply-side policy?

May/June 2018

The government of Slovenia has put in place several supply-side policy measures to affect the country’s inflation rate. Another factor influencing the economy is a shift in trade union membership and strength.

May/June 2018

Moldova is Europe’s poorest economy, and a large share of its population lives in poverty. Its economy is mostly agricultural, with many small farms, and its retail sector is made up largely of small shops. The government has introduced a variety of policies, including supply-side policy, to raise the economy’s performance. These measures have largely worked. For example, unemployment has decreased.

May/June 2019

Nigeria makes a variety of goods, such as delivery vehicles, footwear, machines, maize and office equipment. Nevertheless, oil still dominates its exports. The government attempts to promote growth in the output and export of other goods. It does this through several policy tools, including tax changes and public spending, for example by subsidising construction-worker training. Effective training can create more jobs and lead to higher wages. The government aims to strengthen Nigeria’s macroeconomic performance and improve living standards. Investment in Nigeria has been rising only gradually. Some firms are put off buying capital goods because interest rates are relatively high, the corporation tax rate is high and the economy is uncertain. Nigeria’s population is growing quickly. The birth rate is high and the death rate is falling, although there is net emigration. Nigeria’s population stood at 191 million in 2017 and is predicted to reach 402 million by 2050. A larger population will bring both benefits and problems. It will influence the level of demand in the economy, could damage the environment and will require more food. In 2016, the Nigerian government raised the tariff on imported rice in order to push up domestic rice production. Nigeria is Africa’s biggest producer of rice but also its largest importer. In 2018, Nigeria brought in almost $50\%$ of the rice it consumed. Nigerian farmers produce less rice per unit of land than Asian farmers, and their production costs are high.

May/June 2021

A government applies a range of supply-side policy measures to raise economic performance. Which policy measure would not meet one of the government’s macroeconomic aims?

May/June 2022

A government puts in place a range of economic measures. What is meant by a supply-side policy measure?

May/June 2022

Uganda focuses mainly on agricultural products and has a comparatively small secondary sector. During the 1990s, the Ugandan government privatised most firms, including banks and railways. Some economists judged this privatisation to be unsuccessful, as poverty rose and unemployment stayed high. In more recent years, the Ugandan government has applied supply-side policy measures to cut unemployment.

May/June 2022

A government in a country that is already operating at full employment raises its expenditure on education and training. How does this alter the chance of achieving low inflation in the short run and the long run?

May/June 2023

The government of country Z announces increased spending on workplace training. What is the most likely effect of this supply-side policy?

May/June 2023

How would you define a supply-side policy?

May/June 2024

Which of the following statements about supply-side policy is correct?

May/June 2024

Transport infrastructure in India has improved, which lowers the costs of farming. What does this show an example of?

May/June 2025

Which supply-side policy measure is most likely to help a government achieve its objective of full employment?

May/June 2025

When a government seeks to promote economic growth, it may use supply-side policies. Which policy counts as a supply-side policy?

May/June 2025

A government wants to lower unemployment by applying a supply-side policy. Which measure should it choose?

Oct/Nov 2018

Under which type of policy would government expenditure on education fall? fiscal policy; monetary policy; supply-side policy

Oct/Nov 2019

The introduction of supply-side policy measures, such as deregulation, is pushing China nearer to a market economic system. Some supply-side policies, including education and subsidies, may also lift a country’s economic growth rate. China became a member of the World Trade Organisation in $2001$ and has since abolished some import quotas and cut some import tariffs. These changes may affect the size of its current account surplus.

Oct/Nov 2020

Which supply-side policy measure would help align workers' skills with job vacancies?

Oct/Nov 2021

Which government policy would raise productivity?

Oct/Nov 2021

Which statement about supply-side policies is correct?

Oct/Nov 2021

Which of the following is not a supply-side policy measure?

Oct/Nov 2023

Which macroeconomic policy is most likely to deliver economic growth and price stability simultaneously?

Oct/Nov 2024

What does a successful supply-side policy cause to increase in an economy?

Oct/Nov 2025

Which supply-side policy measure would be most likely to produce the largest rise in labour productivity in a country?

Oct/Nov 2025