• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Discuss the effectiveness of supply side economics in improving the performance of the UK economy. Supply side economics is very effective on a long run basis, but may not be as good on a short run

Extracts from this document...

Introduction

ECONOMICS HOMEWORK Discuss the effectiveness of supply side economics in improving the performance of the UK economy. Supply side economics is very effective on a long run basis, but may not be as good on a short run. This means to improve the economy through competition between firms and markets, to increase efficiency and flexibility through labour and production and also to improve all macro tradeoffs. The effect all this will have on the AS curve is that the AS curve will shift to the right, showing that supply increases and inflation decreases. Also now more jobs will be available which means that the unemployment level will decrease. Supply side economics can do a lot good for the future generations, in a long run, but it may cause problems in a short run. ...read more.

Middle

Also this means that people who don't have many skills other then mining or working in steelworks etc may not be able to get a job anywhere else unless they are taught new skills. Problems like this can also be good for the economy as the old industries or ones who can't cope with the competition could relocate to the new industry will open up more jobs for people. Also the new industries will require different skills or more skills so people will become productively more efficient at their work, which will allow faster economic growth for the UK. Competition can also pump up demand as well, which means that this can also benefit the demand side of economics as well as the supply side. ...read more.

Conclusion

and actually start working and also pay would need to increase so that it encourages more people to work rather than get benefits. If the wages for people is lower than the benefits people get for not working, then people would definitely take the easy way out. If benefits are cut and wages are increased then people will have no choice but to work and earn their money which will increase economic growth and in a long run UK will have better trade offs, because of their good productivity and efficiency inflation will be low which means prices will also be low. This means that the UK will be able to export and import more, but exports will be better as this will mean there is more revenue coming in. ?? ?? ?? ?? ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Here's what a star student thought of this essay

3 star(s)

Response to the question

This essay jumps in a bit quickly to the question. I would've liked to have seen an introduction discussing what UK performance means in macroeconomic terms: inflation rate, unemployment rate, growth. There is no discussion of what a supply side ...

Read full review

Response to the question

This essay jumps in a bit quickly to the question. I would've liked to have seen an introduction discussing what UK performance means in macroeconomic terms: inflation rate, unemployment rate, growth. There is no discussion of what a supply side policy is, or how they work. This means that this essay is short in analysis but has plenty of evaluation. I would note that in an exam, it clearly states that evaluation cannot be awarded if there is no analysis, and so this essay would score poorly.

Level of analysis

The essay has poor analysis but good evaluation. It needed to include an explanation of one supply side policy. This could've been increased investment in education and training, which increases the levels of skills of the labour force after education, thus increasing productivity. I would've then shown this on an aggregate demand and aggregate supply diagram as a shift right of aggregate supply. This then allows a discussion of the effect on real GDP and the price level, leading to an explanation of how it affects employment. Unfortunately, this mechanism is not explored in this essay! I liked how this essay shows clear awareness that supply side policies are poor in the short-term. However, this essay lacks a discussion of the effectiveness. A simple sentence stating "in the short-term supply-side policies aren't effective" would have gained marks. I would've liked to have seen some more sophisticated discussion such as "the effectiveness depends upon how targeted the investment in education and training is". Without any diagrams, it is difficult to hone in on good analysis and so this essay sometimes goes off focus.

Quality of writing

The essay has a poor structure as it goes straight into evaluation. There needs to be a progression from knowledge and understanding, to analysis and then evaluation. There is no clear conclusion in regards to answering the question of how effective supply side policies are. Sometimes the language used is colloquial such as "this is really bad for the economy". I would've liked to have seen more technical terms used, and this is mostly due to the lack of analysis. Spelling, punctuation and grammar are fine.


Did you find this review helpful? Join our team of reviewers and help other students learn

Reviewed by groat 26/02/2012

Read less
Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. Economics - Classical School of Thought, Keynesian School of Thought, Supply Side School of ...

    for example investment increased, then the following process would occur to restore equilibrium: Increase in investment--- increase demand for money---- increase rate of interest---increased saving as borrowed are attracted by higher rates of interest--- equilibrium restored. Say's Law: Say's law is named after an the economist called Say Jean Baptiste.

  2. Development Theories - Describe the Harrod-Domar model of growth

    will increase output in terms of government spending and higher employment and development as a consequence. The government could increase interest rates to encourage savings. This would in the short run cause a decline in growth and possibly development but according to the Harrod-Domar model the increase in savings as a result will lead to economic growth and development.

  1. Conduct a PEST analysis for a company within the Tourism industry.

    Purchasing method Growing direct purchases of holiday packages from airlines will impact the demand situation .Buying the package direct from suppliers i.e. Hotels, air lines will decrease the demand of the tourists. Moreover, low inflation rate and high employment rate and favourable exchange rate will increase the buying power of

  2. Explain the nature of over-riding interests and discuss what are the disadvantages they pose ...

    However in Thatcher v Douglas 1996 the CA held that an equitable easement was an overriding interest under S.70, (1),(a) because of the effect of r.258 of the Land Registration Rules. This decision was later disregarded by LRA 2002 in it's bid to simplify everything.

  1. Macroeconomic Objectives and their impact on Business Activity

    where they were, but leaves UK consumers worse off because they can buy fewer imports than before. Yet another impact of inflation that would affect ASDA is that consumers could find it more attractive to save more and spend less.

  2. GCSE Economics Coursework

    I will be investigating whether these changes, as well as other influences on demand, in the local Newsagents D & D newsagents. Over a year ago, the newsagents came into new management, about the same time as the interest rates started to rise.

  1. What are the important elements of International Trade

    There is however a fluctuating exchange rate which means that the pound to foreign currency is rising and falling. The correct economical term for this is appreciating when the pound rises and depreciating when the pound is falling. If I were to use an example then it would look like the diagram below.

  2. Discuss the policy options the Australian Government can use to achieve external stability

    Specific policy initiatives, such as Austrade's Export Market Development scheme and Australia's ongoing involvement in bilateral and multilateral trade negotiations are aimed at increasing the number of Australian exporters and increasing their international competitiveness on the world stage. In recent years, the Government has given a relaxed view of the

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work