Aggregate supply

Some examples of supply-side policies include education and training, research and development, supporting small/medium entreprise, reducing business taxes, undertaking labour market reforms to diminish frictions that may hold down output, and investment in infrastructure.

For example, the United Kingdom's 2011 Autumn Statement incorporated a series of supply-side measures which the government was undertaking "to rebalance and strengthen the economy in the medium term", which included extensive infrastructure investment and development of a more educated workforce.

[5] Continuing "supply-side reforms" were proposed by Liz Truss and Chancellor Kwasi Kwarteng as part of their 2022 economic programme,[6][7] with reference to "a comprehensive package of supply-side reform and tax cuts" being made in the Growth Plan announced on 23 September 2022,[8] and further supply side growth measures promised for October and early November, including measures affecting the planning system, business regulation, childcare, immigration, agricultural productivity and digital infrastructure.

For example, unused factories are not kept in a state of readiness to be used when an economic upturn begins, or workers miss out on the skills and training which they would normally acquire whilst in work.

[16] Spencer Dale, a British economist who sat on the Bank of England's Monetary Policy Committee between 2008 and 2014, took a pessimistic view of supply-side capabilities during the recession of 2012.