1. Supply Side Policies
Policies designed to increase the country’s long-term potential output (supply)
Aimed at moving the LRAS curve outward, (but may also move the SRAS outward)
Tools for achieving the 4 main economic objectives by impacting the supply-side of the economy

2. Supply Side Policies Deregulation Training / education
Reform labour market
Subsidies
Increase incentives
Infrastructure
Supply side policies can be either ‘market based’ or ‘interventionist’.

3. Evaluation of Supply Side Policies
Positive
Negative
Focus on longer term
Expand economy without risk of inflation
Address structural flaws in economy
May improve current account through improved competitiveness
Expensive
Time lags
No guarantee they will work as intended
May be cut short by government change