Supply-side policies

We have already looked at demand-side policies, but governments also have the option to use supply-side policies.  These are policies that are designed to increase the productive capacity of a country.  As with demand-side policies there are two types: Interventionist policies and Market-based policies.  It is important not just to understand the difference between these, but also to be able to evaluate there use compared to fiscal and monetary policies.  This is also something we will come back to at the end of the section on development economics.

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