The New Economic Paradigm (Grade 12 NSC Matric Economics): Flashcards
📚Flashcards
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Practise the cards
10 cards from this deck
New economic paradigm focus
New economic paradigm focus
Long-term stability via sound policy decisions
Demand-side policies target
Demand-side policies target
Aggregate demand to stimulate spending & growth
Demand-side effect on inflation
Demand-side effect on inflation
Upward pressure on prices when demand exceeds supply
Demand-side effect on unemployment
Demand-side effect on unemployment
Reduces unemployment via job creation
Phillips curve shows
Phillips curve shows
Inverse relationship between unemployment & inflation
Supply-side policies aim to
Supply-side policies aim to
Increase aggregate supply & productive capacity
Supply-side: reducing production costs includes
Supply-side: reducing production costs includes
Infrastructure, admin costs, cash incentives
Supply-side: improving input efficiency includes
Supply-side: improving input efficiency includes
Lower tax rates, capital investment, training
Supply-side: improving market efficiency includes
Supply-side: improving market efficiency includes
Deregulation, competition, level playing field
Key advantage of supply-side policies
Key advantage of supply-side policies
Growth with less inflationary pressure