Manpower policy
Reduce power of trade unions, lower wage rigidities, lower structural rigidities, free wages, greater efficiency, lower COP, lower labour costs, lower SRAS, increase real NY, lower GPL. Higher profits can encourage and enable more investments, promoting actual and potential growth
Reduce unemployment welfare benefits, encourage the unemployed to join the workforce. As previously unemployed people start to join the workforce, the increased size of labour force leads to higher potential output, LRAS increases. Also encourages self-reliance through retraining/skills upgrading/reskilling so structural unemployment decreases. Lower frictional unemployment because people have greater incentive to put in more effort and look for a job