698578
Description
Mind Map by bella.calonje, updated more than 1 year ago
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Created by bella.calonje
about 10 years ago
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Aggregate Supply
- SRAS: the period of time when the prices of the FOPs do not change, labour price is fixed
- a change in any of the factors other then price level will
result in a shift of the SRAS
- A change in wage rates: government raises min wage or trade unions
- A change in the cost of raw materials: for example oil
- A change in the prices of imports: rise in import prices will raise costs of production
- Change in indirect taxes or subsidies
- Change in indirect taxes or subsidies
- A change in the prices of imports: rise in import prices will raise costs of production
- A change in the cost of raw materials: for example oil
- A change in wage rates: government raises min wage or trade unions
- a change in any of the factors other then price level will
result in a shift of the SRAS
- Supply Side Policies
- Interventionist
- Investment in Human capital
- Research and development: tax incentives to increase R & D, tax credits, intellectual
property rights, finance R & D development centres
- Provision and maintenance of infrastructure
- Direct Support for businesses/ industrial policies: improving the competitive nature of industries
through maintenance of anti-monopoly laws, helping enterprises grow,
- Direct Support for businesses/ industrial policies: improving the competitive nature of industries
through maintenance of anti-monopoly laws, helping enterprises grow,
- Provision and maintenance of infrastructure
- Research and development: tax incentives to increase R & D, tax credits, intellectual
property rights, finance R & D development centres
- Investment in Human capital
- Market Based
- reduction in household income taxes
so there is more incentive to work
harder
- reduction in corporate taxes: if businesses are able to keep
more profit there will be greater investment and investment
in R & D- more incentive to be efficient
- Deregulation- if governments have placed many
regulations on businesses that increase costs of
production this reduces potential output- environmental
laws or working laws
- Privatisation- privately owned, profit maximising firms will be more efficient
than nationalised firms will be more efficient then nationalised firms
- Policies to increase competition which encourages greater efficiency
- Policies to increase competition which encourages greater efficiency
- Privatisation- privately owned, profit maximising firms will be more efficient
than nationalised firms will be more efficient then nationalised firms
- Deregulation- if governments have placed many
regulations on businesses that increase costs of
production this reduces potential output- environmental
laws or working laws
- reduction in corporate taxes: if businesses are able to keep
more profit there will be greater investment and investment
in R & D- more incentive to be efficient
- Labour market reforms
- reduction in trade union power
- Reduction/ elimination of minimum wages
- Reduction in unemployment benefits
- Reduction in unemployment benefits
- Reduction/ elimination of minimum wages
- reduction in trade union power
- reduction in household income taxes
so there is more incentive to work
harder
- Interventionist
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