If monetary and fiscal policies are aimed to influence on demand, supply side policies are long run and aimed to increase aggregate supply. The main target of supply side policies is to increase potential output and achieve major economic objectives.
Some supply side policies are designed to reduce government intervention in free market mechanism such as privatization or deregulation, where the former is to reduce government influence in market and increase competition between firms by transferring assets from public sector to private; the latter means removing rules and regulations that limit firms in free market. Deregulation can help increase competitiveness, increase efficiency and productivity.
Other policies mean increase in government intervention in order to stabilize economic activity and correct market failure. They include education/training, encouraging infant industries, reduction in taxes and other benefits… if they are well thought they can all lead to an increase in capacity and move long run supply curve outwards. However all these policies might cost a lot of money for government.
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