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Supply Side Macroeconomics

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Macroeconomics is a scientist which studies an economy as a whole. It is a study of aggregated indicators such as GDP, national income, and price indices. All macroeconomic policies are used to stabilise the economy, which can fluctuate due to different factors. These policies are focused on limiting the effects of the business cycle and make price stability, full employment and growth.

Aggregate demand represents the volume of goods and services that consumers, businesses and government are ready to buy at a given price level. Aggregate demand curve is downward, which means more output is demanded by lower prices. Aggregate supply is real volume of the national product, which can be produced at different price level, and it is upward, …show more content…

In time when there is negative output gap, demand side policies can increase the rate of economic growth. There are few types of this policy: Monetary and Fiscal. Supply Side policies it is alternative way, how to improve economics growth from supply side by using: lower income taxes, flexible labour markets, better union relationships and privatisation and deregulation.
Supply-side economics. It is theory made by Ronald Reagan. It is the branch of economics, which helps to improve productive capacity of economics. Main idea is to keep corporate taxes down then business will have more money to spend on research and creating new products.
Supply-side policies. It is government polices when free market starts working more efficiently by reducing government interference. These politics attempts to shift Aggregate Supply to right and increasing productivity. There are some benefits of these policies like: lower inflation, lower unemployment, improved economic growth and improved trade and balance of …show more content…

Also economics growth can be stimulate by reducing barriers to the production of goods and services( menschen in previous paragraph) As for aggregate supply curve, because of supply-side policies it would shift to the right. As a result price would smaller because the level of real real output would grow, this mean because of higher real output. It would be an increase in productivity and as a result Economic would grow, because there are more goods producing also price would be

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