Evaluate fiscal, monetary and supply-side policies for CIE 9708 using clear mechanisms, contextual analysis, limitations, alternatives and judgment.

Quick answer Supply-side policies aim to increase productive capacity, productivity or labour-market flexibility. They can support long-run growth and lower cost-push inflation, but their effects usually take time and depend on policy design. Key ideas at a glance Policy Main mechanism Evaluation Education and training Raises skills and worker productivity Costly and slow to affect output Infrastructure Reduces business costs and improves connectivity Large opportunity cost a