Supply-Side Policy

Definition - Supply-Side policies aim to increase the productive capacity of the economy by increasing the stock of the facotrs of production or their productivity.

Analysis - Immigration can increase the labour supply and thus stock of labour

Structural Unemployment can be reduced by education/training where skillsa re mismatched

Frictional Unempolyment can be reduced if welfare payments are made less geenrous, so that search times are reduced

Voluntary Unemployment can be reduced if welfare payments are made less generous so that the benefits of work are greater than…