The purpose of supply side policies is to lower the rate of inflation and reducing price levels while still increasing the real GDP. Supply side policies are policies made by the government aimed at increasing aggregate supply. The government may introduce various types of policies that aim to increase the quantity and quality of labour and of capital. Many such policies focus upon incentives for the companies. For example a government may give a company …
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showed last 75 words of 801 total
…before. Bush is also reducing income tax rates, he is hoping that people will work harder to gain more money and then spend more, increasing real GDP in both cases. Hence, depending on the goal of the country that is being dealt with supply side policies can be useful to an extent if not overused and not used in a bad way. So, supply side policies have been successful in most countries but not everywhere.