Goals of Supply-side Policies

This topic explains the goals of supply-side policies, which are long-term government strategies to raise an economy's potential productive capacity by improving the quality and/or quantity of factors of production. The policies aim to shift the economy's LRAS or PPC outwards so that real national output can grow without upward pressure on the general price level, and they target improvements such as greater competition, labour market flexibility, lower inflation, and stronger incentives to invest and innovate.