Interventionist supply-side policies include measures such as: government spending on education and training, industrial policy, subsidising spending on research and development
Interventionist supply-side policies are actions where the government directly spends money or intervenes to boost the economy's productive capacity. Key examples include funding education, supporting specific industries, and subsidising research.
Real World
The UK government's Catapult Centres, including the High Value Manufacturing Catapult, subsidise R&D collaboration between universities and firms like Rolls-Royce, aiming to raise productivity in advanced manufacturing.
Exam Focus
Distinguish interventionist from free market approaches by explicitly stating 'direct government spending' — this signals you understand the mechanism, earning the explain mark.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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