1 / 21

Supply-side Indicators for the UK Economy

Supply-side Indicators for the UK Economy. Tutor2u Economics February 2009. Key supply side concepts. Aggregate supply Incentives for people and businesses Productivity The economy’s productive potential Capital Investment Research and development Product and Process Innovation

nam
Download Presentation

Supply-side Indicators for the UK Economy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Supply-side Indicators for the UK Economy Tutor2u Economics February 2009

  2. Key supply side concepts • Aggregate supply • Incentives for people and businesses • Productivity • The economy’s productive potential • Capital Investment • Research and development • Product and Process Innovation • Skills / Human Capital • Competitive markets / market deregulation • Long run economic growth • Non-inflationary growth

  3. What are Supply-Side Policies? • Supply-side policies are designed to: • Improve incentives for people to get new jobs • Increase the productivity of labour and capital inputs • Increase the occupational and geographical mobility of labour to reduce unemployment • Increase the level of capital investment and research and development spending by firms • Stimulate inflows of overseas capital investment • Increase business efficiency by promoting more competition within and between markets • Stimulate a faster pace of invention and innovation throughout the economy • Provide a platform for sustained non-inflationary growth of an economy

  4. More productivity - better living standards Allows the economy to grow without inflation More competition - lower prices – gains in welfare Makes the UK more competitive in global markets Increased tax revenues to fund state spending Provides the platform for long term growth Importance of supply-side policies Long term importance of supply-side policies for the British economy

  5. Relative productivity

  6. Estimates of Trend Growth

  7. Spending on research and development

  8. Output per hour worked

  9. Potential GDP and Trend Growth

  10. Investment and Productivity in the UK Economy

  11. Actual and Potential GDP

  12. Investment and GDP Growth

  13. Profitability of Manufacturing and Service Sector Industries

  14. Estimated NAIRU for the UK

  15. UK Output Gap

  16. Labour Market Participation

  17. Unemployment Rates

  18. Unfilled Vacancies

  19. Public and Private Sector Jobs

  20. Inflation-Unemployment Trade Off

  21. Relative Living Standards

More Related