Task1. Set scene long term growth(find economic growth). Production possibility (illustrate growth,charts). Increase productivity as well use charts and explain. Technology very important. Increase immigration( change productivity), keep increasing explore technology. Supply side policies (two types): 1. market based( selling water uk, utilities, electric) and 2. Government ( could be substitutes, tax allowances) Task2. Agred demand chart and explain.AD=C+I+G+(X-m) Sort run stimulate. Fiscal policy( net tax, government expenditure) how we use tax stimulate agred demand(VAT, national insurance) real examples of Taxation. Monetary policy ( changing demand supply of money) • Notes+ coins • Reserve requirements • Electronic print money • Official interest rates Agred demand by reducing interest rates use charts as well.
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