Th2.6: Supply Side Policies

Question 1

What are supply side policies?

Answer 1

government policies aimed at increasing the productive potential of the economy and moving the supply curve to the right

Question 2

Over time, how can there be supply-side improvements independent of the government?

Answer 2

through actions of the private sector such as investment, however the government is able to use these policies in order to increase and speed up these improvements