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Increased education and training

Better education can improve labor productivity and increase AS.

Often there is under-provision of education in a free market, leading to market failure. Therefore the govt may need to subsidies suitable education and training schemes.

However govt intervention will cost money, requiring higher taxes, it will take time to have effect and govt may subsidies the wrong types of training

Reducing the power of Trades Unions

This should

* increase efficiency of firms e.g. less time lost to strikes

* reduce unemployment ( if labour markets are competitive)

Reducing State Welfare Benefits

This may encourage unemployed to take jobs.

Providing better information about jobs

This may also help reduce frictional unemployment.

Deregulate financial markets to allow more competition and lower borrowing costs for consumers and firms. Lower Tariff barriers this will increase trade.

Removing unnecessary red tape and bureaucracy which add to a firms costs Improving Transport and infrastructure. Due to market failure this is likely to need govt intervention to improve transport and reduce congestion. This will help reduce firm’s costs.

This is said to be an important objective for the EU to increase competitiveness. E.g. make it easier to hire and fire workers.

c) The government supply side economics reduce unemployment

Most governments now accept that an improved supply-side performance is the key to achieving sustained economic growth without a rise in inflation. But supply-side reform on its own is not enough to achieve this growth. There must also be a high enough level of aggregate demand so that the productive capacity of an economy is actually brought into play. There are two broad approaches to the supply-side. Firstly policies focused on product markets where goods and services are produced and sold to consumers and secondly the labour market – a factor market where labour is bought and sold.

Supply Side Policies for Product Markets

Product markets refer to markets in which all kinds of commodities are traded, for example the market for airline travel; for mobile phones, for new cars; for pharmaceutical products and the markets for financial services such as banking and occupational pensions. Supply-side policies in product markets are designed to increase competition and efficiency. If the productivity of an industry improves, then it will be able to produce more with a given amount of resources, shifting the LRAS curve to the right.

Privatisation

Over the last twenty-five years, many former state-owned businesses have been privatised – i.e. they have transferred from the public sector into the private sector. Examples in 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。