Wednesday, January 09, 2008

Unit 3: Supply side policy: Changes to benefits

From the Guardian come these proposals regarding the unemployed who claim benefits

http://www.guardian.co.uk/guardianpolitics/story/0,,2236887,00.html

a) List the proposals
b) Explain why these proposals are supply side policies
c) If implemented, what effect do you believe they would have on the UK macro economy?
d) Draw an AD/AS diagram to show this effect

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