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Report on Economics For Business - UK

   

Added on  2020-06-05

10 Pages3165 Words55 Views
ECONOMICS FORBUSINESS

Table of ContentsINTRODUCTION...........................................................................................................................1Use of supply side policies for facilitating economic growth.....................................................1Benefits of using supply side policies.........................................................................................2Supply side policies for facilitating economic growth................................................................2Various Supply side policies that can be adopted by UK............................................................3Limitations to supply side policies..............................................................................................5Impact of supply side policies on economic growth of UK........................................................6CONCLUSION................................................................................................................................6

INTRODUCTIONSupply side policies are micro economic activities that generally aims for economic growthof the country. The main aim of this report is to assess the application of supply side policies thatcan help in facilitating economic growth of the country. The report then make comprehensivediscussion regarding various benefits and limitations linked to it. In the end, discussion will bemade regarding impact of adoption of supply side policies on overall economic growth of UK. Use of supply side policies for facilitating economic growthSupply side policies are considered as the policies, the aim of which is to maximize theaggregate supply (AS). The actual purpose of using the supply side policies is to increase theability of the economy to be productive enough for making improvements in the essential factorsof the production (Canto, Joines and Laffer, 2014). Although there are basic four factors ofproduction only but it focuses on making improvements in the quantity as well as the quality ofall these four factors. So, the supply side policies are actually meant for increasing theproductivity. So, the involvement of the supply side policies by the government of UK are aneffective factor for facilitating the overall economic growth. The government of UK makes theinvolvement of it because there are enormous number of benefits that can actually aggregate thesupply and maximize the productivity at a higher extent that eventually, it can lead to the ease ofthe growth in economy. So, it can be classified that the supply side policies are also termed as theattempts that the government make use of for achieving all the targets and goals. There are two types of supply side policies that can be involved for an efficient economicgrowth and these involve interventionist supply side policies and the free market supply sidepolicies. In case of the free market policies, the focus is on the competitiveness factor. As there isa huge competition in the market as every firm is trying to involve objectives that can help themto achieve their targets. So, free market policies keeps their focus on the competition. It canfurther involve various aspects and some well known and common examples of this can beconsidered as deregulation, less rate of the income tax values, the power of trade unions etc. Onthe other side, the interventionist policies makes involvement of various ways and policies thatthe government may use in order to reduce the risk of market failure. A very common exampleof this can be considered as the overall rate spend on the transportation by the government. 1

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