Essay skills

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Essay skills

• Activity left over from last lesson..
• Then introduce supply side
• Next lesson pros cons of supply side
• Use worksheets for ideas
• T2U revision notes too

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Homework due in
Positive aspects of Budget?
Negative aspects of Budget?

• Budget review

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Exam skills
Group work
Group plan
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Typical 14 mark Q.

• Examine how interest rate decisions may be used
  to achieve the governments inflation target.
• Examine how tax rate decisions may be used to
  achieve the governments growth target.
• Examine how public sector spending may be used to
  achieve the governments debt target.

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Essay template .idea for structure

• You need pens
• An A3 sheet
• A question sheet
• You have 10 mins to plan your answer.

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• Examine how interest rate decisions may be used
  to achieve the governments inflation target.

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• Examine how tax rate decisions may be used to
  achieve the governments growth target.

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• Examine how public sector spending may be used to
  achieve the governments debt target.

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Supply Side policies
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Aims / Syllabus

• To understand the concept of long term trend
  growth
• To know different supply side policies
• To evaluate the effectiveness of supply side
  policies.

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PPF AD/AS links.
How can you push LRAS curve out?

• Draw a PPF diagram with unemployment

• Draw me an AD LRAS diagram with unemployment

How can you get to the PPF curve? Can you go
beyond the PPF?
What needs to happen in both scenarios to reach
Allocative efficiency?
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So what are supply side policies?

• underlying long-run trend rate of economic growth
• TREND RATE GROWTH.

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Supply side policies aim to

• Improve the efficiency of factor markets, to
  boost productivity and hence the overall capacity
  of the economy
• shifting long run aggregate supply (LRAS) to the
  right
• and pushing out the PPF

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Plan for Growth

• Current govt The Plan for Growth includes a
  package of measures to create a new model of
  economic growth by achieving four overarching
  ambitions
• 1. To create the most competitive tax system in
  the G202. To make the UK the best place in
  Europe to start, finance and grow a
  business3. To encourage investment and exports
  as a route to a more balanced economy and4. To
  create a more educated workforce that is the most
  flexible in Europe.

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Make your own notes
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Education.
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Training
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Immigration
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Improved technology
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(No Transcript)
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Corporation tax

• Further reading
• http//cdn.hm-treasury.gov.uk/2011budget_growth.pd
  f

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Govt Capital Investment
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Innovation
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Homework
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Exchange Rate - SPICED