SEARCH
You are in browse mode. You must login to use MEMORY

   Log in to start


From course:

Economics A Level

» Start this Course
(Practice similar questions for free)
Question:

How can both Demand and Supply Side be used Together? Use Unemployment as an Example

Author: go kys



Answer:

-Loose Fiscal Policy boosting AD can Reduce Unemployment. But this can do Naught to the NRU [Natural Rate of Unemployment] so when the Policy ends, Unemployment may return back to its ‘Pre-Boost Equilibrium’ -So a Supply Side may be used to Reduce the NRU - make it Long lasting. This can be done via Tax Breaks [Firms Invest] & Increased Incentive to Worker -This can hopefully mean the NRU goes Down as well as Unemployment


0 / 5  (0 ratings)

1 answer(s) in total

Author

go kys
go kys