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Edexcel Economics A Supply Side Policy Summary

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Edexcel Economics A Supply Side Policy Summary with relevant diagrams, real world examples. Includes definitions, clear explanations of all concepts and evaluations.

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YEAR 13 A LEVEL EDEXCEL ECONOMICS A SUPPLY POLICY RESEARCH PROJECT
Supply Policy = policies aimed to increase the economy’s productive potential by shifting the
LRAS curve to the right.
- Microeconomic  aim to improve general economic performance by increasing the
motivation and efficiency of individual economic agents.
- Seek to increase competitiveness, productivity, investment and flexibility in product
and labour markets.
Successful Supply Side
Policies
Rightwards shift of
LRAS – increases
economy’s productive
potential from Yfe to
Yfe1, raises potential
economic growth,
lowers inflationary
pressures (avg prices
fall from P to P1), helps
improve CA position
and reduce
unemployment.

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