Supply side policy
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What supply-side policy changes

What supply-side policy changes

AD-AS diagram with AD, SRAS1 to SRAS2, and LRAS1 to LRAS2 showing higher real GDP and lower price level after supply-side policy

Supply-side policy aims to increase the economy's productive potential by improving productivity, incentives, competition, or labour-market performance. Unlike pure demand management, it tries to raise what the economy can produce, not just how much people spend.

Supply side policy Lesson

  1. A Level
  2. /Economics
  3. /Supply side policy