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论文作者:www.51lunwen.org论文属性:硕士毕业论文 thesis登出时间:2015-04-14编辑:felicia点击率:24056
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摘要:本文是关于市场发展和失业率之间联系的一篇论文,市场的发展会对失业率产生一定的影响,希望大家通过这篇文章能够对就业率、失业率与市场的联系有更深的认识和了解。
b) The supply side economics reduce unemployment
Supply Side economics is the branch of economics that considers how to improve the productive capacity of the economy. It tends to be associated with Monetarist, free market economics. These economists tend to emphasize the benefits of making markets, such as labor markets more flexible. However, some supply side policies can involve government intervention to overcome market failure. Supply Side Policies are government attempts to increase productivity and shift Aggregate Supply (AS) to the right.
Benefits of Supply Side Policies
Lower Inflation.
Shifting AS to the right will cause a lower price level. By making the economy more efficient supply side policies will help reduce cost push inflation.
Lower Unemployment
Supply side policies can help reduce structural, frictional and real wage unemployment and therefore help reduce the natural rate of unemployment.
Improved economic growth
Supply side policies will increase the sustainable rate of economic growth by increasing AS.
Improved trade and Balance of Payments.
By making firms more productive and competitive they will be able to export more. This is important in light of the increased competition from S.E. Asia.
Diagram Showing effect of Supply Side Policies
Supply Side Policies
Most supply side policies aim to enable the free market to work more efficiently by reducing govt interference.
Privatisation.
This involves selling state owned assets to the private sector. It is argued that the private sector is more efficient in running business because they have a profit motive to reduce costs and develop better services.
Deregulation
This involves reducing barriers to entry in order to make the market more competitive. For example BT used to be a Monopoly but now telecommunications is quite competitive. Competition tends to lead to lower prices and better quality of goods / service.
Reducing Income Taxes.
It is argued that lower taxes (income and corporation) increase the incentives for people to work harder, leading to more output.
However this is not necessarily true, lower taxes do not alwa本论文由英语论文网提供整理,提供论文代写,英语论文代写,代写论文,代写英语论文,代写留学生论文,代写英文论文,留学生论文代写相关核心关键词搜索。