DP Economics Questionbank

Explain how increased investment by the government in education and training can affect both aggregate demand and aggregate supply.

State two interventionist supply-side policies that are likely to increase the demand for low-wage labour in Fairland.

Using an AD/AS diagram, explain the impact on the potential output of the Philippines of the government increasing its “spending on new airports, roads and bridges” (paragraph [4]).

Explain how the use of supply-side policies might encourage greater domestic competition and improve the international competitiveness of a country.

Using real-world examples, evaluate the view that the use of interventionist supply-side policies is the most effective way of reducing a country’s rate of unemployment.

Using an AD/AS diagram, explain the likely impact of North Macedonia’s supply-side policies on its full employment level of output (Text B, paragraph [2]).