4.2.5.2 Supply-side policies - Key Terms

Supply-side policies

Policies directed at businesses to encourage growth of new and existing businesses

Interventionist policies

Policies created by the government to boost the economy

Non-interventionist policies

Policies dictated by market forces to boost the economy

Privatisation

When a firm becomes privately-owned

Marketisation/commercialisation

Introducing competition into the public sector in areas previously under government control

Deregulation

The reduction or elimination of government policy in an industry

Supply-side improvement

Increasing aggregate supply by alleviating pressures on firms