Cause of economic growth
- component of AD in the short run
- AS in the long run
- could write with reference to all policies.
Achievement of supply side
- economic growth
- capital investment
- low unemployment
- advance technology manufacture
- living standard
- productivity
- international trade position
- wage
benefit of Budget deficit
- government spending on capital investment that bring potential benefits in the long run
- if increases in public sector such as health, education, it will increase labour productivity and employment.
- A tool of demand management.Maintaining a high level of demand and keep unemployment low.
Cost of inflation
- Menu cost
- shoeleather cost
- inflation cause inflation
- fall in the money value
- fiscal drag
- uncertainty
- inflationary noise
- loss of international competitiveness
Import controls
- tariff
- quotas
- embargoes
- red tape
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