Supply-side policies are government interventions designed to boost the economy’s long-term productive capacity by increasing the supply of goods and services.

• These policies shift the long-run aggregate supply (LRAS) curve to the right, raising potential output at full employment.
• The primary goals are to enhance productivity, expand factors of production, and improve efficiency, fostering sustainable economic growth and higher living standards.
• They target supply-side factors, such as labour, capital, enterprise, and land, through measures like tax reductions, education and training investments, deregulation, and infrastructure development.