Final answer:
Supply-side policies aim to boost productivity and economic growth, not to focus on wealth redistribution. These policies include tax cuts, deregulation, and investments in human capital, which shift the supply curve to the right. Tools to increase demand for unskilled labor are effective for job creation, while raising wages may require different policy tools.
Step-by-step explanation:
The goal of supply-side policies is not to focus on wealth redistribution policies, but rather to increase productivity and economic growth. Supply-side policies typically involve measures such as tax cuts, deregulation, and investment in human capital to incentivize production and ultimately shift the aggregate supply curve to the right. These policies are aimed at creating a stable and market-oriented economic climate that fosters innovation and increases the productive capacity of the economy.
When looking at low-skilled workers, if the policy goal is to expand employment, it's more effective to use tools that shift the demand for unskilled labor. This could include subsidies to employers or targeted training programs. However, if the goal is to raise wages, focusing on the supply of unskilled labor may not be as effective, given the elastic nature of this supply; instead, minimum wage laws or labor union negotiations could play a more critical role.