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SUPPLY SIDE POLICIES (Short run supply side policies (SRAS) (Price…

- - - - Limitations
        
        1) Black markets may arise from a lack of production output due to the lowering of price
        
        2) Loss in consumer welfare results
        
        3) It is a short term solution and is usually used as a stop-gap measure.
    - - LIMITATIONS
        
        1) Leads to a surplus of goods produced
        
        2) It is a short term solution and is usually used as a stop-gap measure.
  - - - 1) Social tension may result.
      - 2) Is a short-term solution and is usually used as a stop-gap measure.
      - 3) Unable to resolve profit-push inflation in firms with larger market power.
  - - - 1) Social tensions arise when too many foreign workers immigrate.
      - 2) Lower non-material standard of living may result from a lack of sufficient infrastructure for a growing population. (over-population)
- - - - LIMITATIONS
        
        1) Success depends on the age, aptitude and attitude of workers in training.
        
        2) Long gestation period for the training to finish and produce results.
    - - LIMITATIONS
        
        1) Strain on the government's budget.
        
        2) Long gestation period
        
        3) Non material standard of living may decrease with high construction volume.
  - - - 1) Long gestation period with no guarantee of success.
      - 2) Strain on the government's budget to provide funds for research
      - 3) Opportunity costs incurred.
  - - - 1) Strain on the government's budget as administration costs have to be considered to carry out legislation of firms.
      - 2) Deregulation may invoke inefficiency if market was more efficient as a monopoly
      - 3) Deregulation may invoke inefficiency as well if efforts are placed on imaginary competition such as advertising, which does not improve the actual quality and lower the price of products.