Definition
- Interventionist supply-side policy
- An interventionist supply-side policy has the government choose and pay for investment itself, in physical capital, human capital or technology.
Example
Can you think of an example of interventionist supply-side policy?
The state builds roads, railways and power supply; pays for schools, apprenticeships and job training; and funds research in government laboratories and grants to universities.
Test yourself
Can you name the two types of supply-side policy?