Ch. 32

• What are supply-side policies intended to impact?

  Long-run aggregate supply
• What is the goal of supply-side policies?

  To increase potential capacity output of the economy
• What are market-based supply-side policies?

  • Policies that allow markets to operate freely
  • Provide incentives for enterprise and initiative
• What are interventionist supply-side policies?

  • Government interventions to stimulate aggregate supply