Supply-side Policies

Definition of Supply Side Economics

Supply Side economics is the branch of economics that considers how to improve the productive capacity of the economy. It tends to be associated with Monetarist, free market economics. These economists tend to emphasise the benefits of making markets, such as labour markets more flexible. However, some supply side policies can involve government intervention to overcome market failure
Supply Side Policies are government attempts to increase productivity and shift Aggregate Supply (AS) to the right.