Supply Side Policy

This refers to economic interventions to increase or reduce the supply of goods and services.

Supply Side Policies may be longer term interventions than most demand side policies, for example boosting the education and skills levels of the workforce in order to support the supply of higher value goods and services. Changes to corporate taxation can also be used to stimulate the supply side, for example tax allowances for R&D or reducing employer’s contributions to employee taxation.

Supply Side Policy is a term normally found in business economics and financial management.

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