I am the Finance Minister and I'm going to educate you about how to operate more efficiently,i.e. introducing to you supply side policies! :) Supply side policies (SSP) are macro-economic policies which improve the supply-side potential of an economy as they target the aggregate supply of markets, thus contributing to a faster rate of growth of real national output.
In my next few blogposts, I will be introducing several SSP, namely those that affect the short run and long run aggregate supply curve.Every blogpost will be organized according to these framework:
1) Macroeconomic problem
2) Diagram
3) Using of the diagram to explain how SSP can solve the problem
4) Examples
5) Limitations
We hope that through this framework, you would understand the government's rationale behind each SSP.
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