ATAR Notes: Forum
VCE Stuff => VCE Business Studies => VCE Subjects + Help => VCE Economics => Topic started by: Nima2703 on November 12, 2012, 05:04:35 pm
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For a aggregate supply policies to reduce the effects of an aging population can you use decreased PAYG increasing incentives to work and work harder thus increases productive capacity and labour efficiency and hence reducing the effects of aging population such as decreased participation rates and lower supplies of labour? thanks :)
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yes you are quite right on that, as lowering the PAYG does increase the participation rates. Other examples that would be possible could be increasing the amount of skilled migrants which helps boost participation rate and consumption spending.
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Immigration should be the most obvious :P