Supply side economics.
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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 a reduction in tax. A government may do this if they believe that the company will either invest in capital or labour. With the mone…
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