Supply-side Policies: policies that aim at increasing the aggregate supply of an economy, shifting the AS curve to the right
Some possible ways of increasing the aggregate supply including improving education, making available better health services, the government providing better infrastructure and possibly improving the institutional framework. Another possibility could be do decrease minimum wage. But if that were to be done, even the most honest companies, would abuse this policy and pay their workers much less than what they deserve.Demand-side-Policies: policies that attempt to increase or decrease (or more precisely, to slow down the increase) in aggregate demand in order to affect output (growth), employment and the average price level.
There are 2 types of demand-side policies:
1. fiscal policy- manipulation of the level of government expenditures and/or of taxes
2. monetary policy- refers to changes in interest rates
Overal I think that supply-side policies are much more effective because there is a wide range of things that the government could do that could make the consumers happy.