Wednesday, April 29, 2009

Unit 2: Supply side policies in the USA: R&D

The BBC reports Obama pledging an increase in US spending on R&D

a) Why is this an example of a supply side policy?
b) Using an AD/AS diagram, show the effect of this policy i(f it were to be succesful) on the US economy
c) Evaluate how successful such a policy is likely to be

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