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Supply side economics

Issues that impact the supply of goods and services in the economy. This covers a wide range of issues including business taxes, education, migration, support to encourage research and development, subsidies and grants for vulnerable industries and businesses and laws regulating economic activity.

Below is an example of the two schools of thinking behind supply-side economics. The first is the classical view that there is a shift in the LRAS curve which expands the productive capacity of the economy. Then there is also the keynesian viewpoint that the supply curve which has many elasticity points shifts outwards.

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