Supply-Side Policies
Supply-side policies aim to increase aggregate supply and potential output through education, infrastructure investment, deregulation, competition, and innovation support. These policies increase productivity and long-run growth.
Real World
Germany's dual apprenticeship system, where firms like Siemens and BMW train over 1.3 million young workers annually alongside classroom study, has kept youth unemployment consistently below 7% — far lower than most EU nations.
Exam Focus
Contrast short-run demand-side effects with long-run supply-side benefits — examiners reward candidates who distinguish between time horizons.
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