The difference between supply-side policies and supply-side improvements in the economy
Supply-side policies are actions a government takes to grow the economy's productive capacity. Supply-side improvements are the actual gains in productivity and output that result.
Real World
The UK government's 'Help to Grow' scheme (a supply-side policy) offered subsidised management training to SMEs; the supply-side improvement would only materialise if firms actually became more productive as a result — the two are not automatic.
Exam Focus
Never conflate the policy with its outcome — examiners reward students who explain the transmission mechanism linking a specific policy to a specific improvement.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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