Supply-Side Policy

It increases labour market flexibility, making it easier to adjust wages and hire workers.

By reducing barriers, deregulating markets, and encouraging firms to operate more efficiently.

Government measures to directly improve factors of production, such as education, healthcare, and infrastructure.

Reducing unemployment benefits and abolishing minimum wages.

By providing incentives such as tax cuts and reducing business costs to promote investment in R&D.

Deregulation and anti-monopoly regulation.

They increase productive capacity, shifting the LRAS curve to the right and promoting economic growth.

It reduces government restrictions to increase business efficiency and competitiveness.

It drives innovation, leading to higher productivity and competitiveness.

Education and training programs, and provision of infrastructure.

The transfer of ownership of state-owned enterprises to the private sector to increase efficiency.

They increase incentives for investment in businesses and innovation.

They shift the long-run aggregate supply (LRAS) right, lowering price levels and improving international competitiveness.

By improving the quality and productivity of the labour force.

Through labour market flexibility, such as reducing the power of unions and adjusting wage policies.

It reduces costs for firms, improves efficiency, and encourages business growth.

To increase the economy’s productive capacity and promote long-term growth.

Policies such as personal income tax cuts or reductions in business taxes to encourage productivity and investment.

Market-based rely on reducing regulation and costs, while interventionist focus on direct government investment in resources.