Unit 3.7 · Supply-side Policies
Effectiveness of Supply-side Policies
AO3
Syllabus Requirement
Evaluation of time lags, equity trade-offs, costs, political feasibility, and environmental effects. Market-based strengths include efficient allocation; interventionist policies directly support key sectors.
Assessment Objectives
AO3Synthesis and Evaluation
Summary
The effectiveness of supply-side policies is evaluated based on their ability to achieve macroeconomic goals such as economic growth, low unemployment, and stable inflation. These policies can face various constraints, including equity issues, time lags, vested interests, environmental impacts, and high costs associated with interventionist approaches.