Supply Side Policies - Explained I A Level and IB Economics

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In this step you'll learn about supply side policies. Supply side policies aim to increase the productivity and overall quality of factors of production, and thereby increase the productive capacity and capability of an economy. They focus on getting the structural, long-term performance of an economy moving in the right direction. Supply side policies can involve market-led policies, interventionist policies, tax incentives, and investment in public services. They aim to increase the rate of capital investment, lift the level of research and development spending, and make product markets more competitive. Ultimately, their goal is to increase a country's trend rate of growth of real GDP.