Supply-Side Policy

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

It drives innovation, leading to higher productivity and competitiveness.

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

They increase incentives for investment in businesses and innovation.

Deregulation and anti-monopoly regulation.

Education and training programs, and provision of infrastructure.

Reducing unemployment benefits and abolishing minimum wages.

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

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

By improving the quality and productivity of the labour force.

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

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

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

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

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

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

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

By reducing tariffs and barriers, allowing firms to access larger markets and resources.

It reduces government restrictions to increase business efficiency and competitiveness.