are aimed at increasing aggregate supply (AS), a shift from left to right. They enhance the    of an economy while improving the and quality of the four factors of production.

productive  Supply  policies  capacity  side  based  market  quantity Demand  

     supply side policies consist of policies which aim to increase the growth of AS by placing a greater emphasis on market forces and   .

 competition  Interventionist  side  based  Market  quantity 

 supply side policies aim to increase the growth of AS by placing a greater emphasis on intervention by   .

governments  Interventionist  side  Market  quantity 

  consists of any large scale used in the production of and   .  When the government increases the     base of the country it also increases the production capacity (   ) of the economy.

capital  LRAS  Infrastructure  goods  infrastructure  Current  services  AD 

    includes policies aimed at improving the     and or quality of labour through improvements in education and   .

Medical  capital  Human  health  quality  quantity 

  describes the transfer of assets from the public (government) sector to the  sector.

Nationalisation  Privatisation  public  private 

Examples of based policies include encouraging competition through deregulation and     plus reducing the amount of tax paid to provide greater incentives to work.

nationalisation  privatisation  market  private 

Examples of     approaches include the direct provision of, for example, education and training to improve       , improving transport infrastructure or providing incentives to encourage entrepreneurship.

capital  market  interventionist  private  labour  productivity 

One obvious advantage of supply side policies is that unlike   policies, the higher GDP comes without a rise in .  They can also help create real jobs and sustainable growth through their positive effect on labour productivity and competitiveness.  Increases in competitiveness will also help improve the balance of payments.

productive  money  inflation  side  supply  demand 

A     of supply-side policies, however, is the time that they take to work their way through the economy.  For example, improving the quality of human capital, through and training, is unlikely to yield quick results. The benefits of deregulation can only be seen after new firms have entered the market, and this may also take a long time.

  weakness  strength  investment  education  health 

In addition, supply-side policy can be very to implement.  For example, the provision of education and training is highly    intensive and extremely costly, certainly in comparison with changes in interest rates.

capital  demand  costly  labour 

Furthermore, some specific types of    -    policy may be strongly resisted as they may reduce the power of various   groups.

 supply  demand  side  interest