Long questions
Question 1
(a) Distinguish between market based and interventionist supply-side policies.
(b) Using specific examples and diagrams where appropriate, analyse the costs and benefits to the economy of the government implementing a market based approach to supply-side policy.
Question 2
(a) Explain why the shape of the aggregate supply curve may differ in the short and long run.
(b) Evaluate the extent to which supply-side policy attempts is effective in influencing output, employment and income in the long run.