Saturday, March 03, 2012

Unit 2: How to increase the Aggregate Supply/Potential output of a country

A typical answer would be to have a supply side policy to improve the skills of the workforce.

This worrying clip from the BBC suggests the skills required by a lot of workers are fairly basic

http://www.bbc.co.uk/news/business-17229792

and

http://www.bbc.co.uk/news/education-17224600

a)How would increasing the numeracy skills of a country's workforce increase the potential output /AS of a country?

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