Supply -Side Policy
Supply-side policy is increase Aggregate Supply (AS) by improving the efficiency of labour and product markets. Supply -side policy always aim to increase AS, they never designed to reduce AS. And they should to increase real GDP, reduce unemployment, reduce inflation.
If Long-Run Aggregate Supply shift to the right the productive capacity of the economy has increased.
Example: Increase Quantity of Labour supply - introduce a minimum wage to encourage people to work, reduce income tax, reduce jobseekers allowance. OR education and training lead to increase productivity that is mean to increase quality of labour. Also to improve productivity of capital- it can be help to invest and develop new technology , eg give to firms some subsidy . Privatisation - increase efficiency in the allocation and utilisation of resources and also a major factor to cut down borrow by the government. Deregulation - to remove rules to make easier for companies to enter markets and become more efficient.