Free market supply-side policies include measures such as: tax cuts, privatisation, deregulation and some labour market reforms
Free market supply-side policies use market forces to grow the economy's productive capacity. They include cutting taxes, selling state-owned firms, removing regulations, and reforming labour markets.
Real World
The UK's privatisation of British Telecom in 1984 transferred the firm to private ownership, and subsequent deregulation introduced competitors like Mercury, driving down call prices and spurring network investment.
Exam Focus
List at least two distinct free market policies with separate mechanisms — vague answers that treat all tax cuts as identical rarely score above Level 2.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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