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    Hello, I was wondering if anyone could provide some input into the question below:

    'Evaluate the importance of supply side policies in helping to control inflation in the UK' (25) marks

    Here's what I have so far:
    Inflation is the general increase in the price level of goods and services, over a period of time. Supply-side policies aim to increase the potential output of a firm, which can be shown by an outwards shift in the curve on a Production Possibility Frontier (PPF), for example a cut in income tax, which would eventually lead to demand-pull inflation.

    Thank you in advance.
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    I'm not sure on your exam board, but we've been taught that supply side polices increase the quality and quantity of a good, service or labour. This can help to reduce inflationary pressure(very simply shown as an outward shift in AS and thus lower price level).
    You might also discuss some of the other polices to control inflation. Have a look at these study notes by tutor2u
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    (Original post by AindowJ)
    Hello, I was wondering if anyone could provide some input into the question below:

    'Evaluate the importance of supply side policies in helping to control inflation in the UK' (25) marks

    Here's what I have so far:
    Inflation is the general increase in the price level of goods and services, over a period of time. Supply-side policies aim to increase the potential output of a firm, which can be shown by an outwards shift in the curve on a Production Possibility Frontier (PPF), for example a cut in income tax, which would eventually lead to demand-pull inflation.

    Thank you in advance.
    You need to introduce at least 2 fully developed supply side policies and explain how each one lowers inflation rate. You could also consider introducing a demand side policy to lower inflation.
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    I'm on the new AQA spec, though I was using this old question to practice
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    Talk about what policies you would use and how they would reduce inflationary pressure.

    Then I would evaluate and talk about the time delay and demand side policies which you could use in the short term to control inflation.
 
 
 
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