25 mark Essay help | Control inflation using supply-side policies

Watch
AindowJ
Badges: 4
Rep:
?
#1
Report Thread starter 5 years ago
#1
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.
0
reply
username2460773
Badges: 12
Rep:
?
#2
Report 5 years ago
#2
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
0
reply
keynes24
Badges: 10
Rep:
?
#3
Report 5 years ago
#3
(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.
0
reply
AindowJ
Badges: 4
Rep:
?
#4
Report Thread starter 5 years ago
#4
I'm on the new AQA spec, though I was using this old question to practice
0
reply
dean01234
Badges: 19
Rep:
?
#5
Report 5 years ago
#5
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.
0
reply
X

Quick Reply

Attached files
Write a reply...
Reply
new posts
Back
to top
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

Do you think receiving Teacher Assessed Grades will impact your future?

I'm worried it will negatively impact me getting into university/college (102)
40.16%
I'm worried that I’m not academically prepared for the next stage in my educational journey (29)
11.42%
I'm worried it will impact my future career (18)
7.09%
I'm worried that my grades will be seen as ‘lesser’ because I didn’t take exams (58)
22.83%
I don’t think that receiving these grades will impact my future (30)
11.81%
I think that receiving these grades will affect me in another way (let us know in the discussion!) (17)
6.69%

Watched Threads

View All
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise