Benefits

Supply side

Cause of inflation

Will increase in currency value increase exports

Private Benefits

• Definition: Private benefits are the gains or advantages that individuals or firms receive directly from an economic activity.

• Example: A firm's profits from selling goods or services.

• Decision Making: It involves decision making based on private individuals, firms and microeconomic perspectives

External Benefits

• Definition: External benefits occur when an individual's or business's actions create positive effects for others without direct compensation.

• Education – A well-educated person benefits society by contributing skills, innovation, and economic growth.

Supply-Side Policy

• Definition: Measures designed to increase the productive capacity of the economy by improving the efficiency and competitiveness of markets.

• Explanation: Enhancing the skills, knowledge, and experience of the workforce through education, training, and healthcare.

• Impact: Improves labor productivity, leading to economic growth.

Causes Of Inflation

• When demand for goods and services exceeds supply, prices rise.

• Causes:

  • Increase in consumer spending due to rising incomes or government stimulus.

  • Low interest rates making borrowing cheap.

  • Strong economic growth.

• When the cost of production rises, businesses increase prices.

• Causes:

  • Higher wages.

  • Increased raw material costs (like oil, gas, or metals).

  • Supply chain disruptions.

Will Increase In Currency Value Increase Exports

• No

• When your currency appreciates, your goods become more expensive for foreign buyers.

• This reduces demand for your exports because other countries might switch to cheaper alternatives.