Introduction to Supply Side Policy

The video provides an introduction to supply side policy, distinguishing it from fiscal policy. It discusses the political aspects, interventionist and free market approaches, and the importance of understanding these concepts. The video explains how fiscal policy affects aggregate demand and inflation, and how supply side policy aims to increase productivity through incentives. It highlights the political nature of supply side policy, comparing free market and interventionist views. The video concludes with a discussion on principles, common confusions, and a preview of future topics.

What are the implications of an interventionist approach to supply side policy?

In what ways can supply side policy be seen as a free market approach?

How can a reduction in the rate of income tax be viewed from both fiscal and supply side policy perspectives?