No. Only the tiniest fraction of American judicial policy is made by the Supreme Court.
Judicial Activism
Judicial activismFor more information, see Related Questions, below.
Plessy v. Ferguson
judicial restraintFor more information, see Related Questions, below.
By taking policy making, the court asserted a type of judicial philosophy known as judicial review.
The Supreme Court has the unwritten policy of judicial review. This means that they can check amendments and bills that the other two branches of the federal government suggest. If a law seems to be unconstitutional, and not written in the constitution, the Supreme Court can decide it is unconstitutional.
Intermediate scrutiny is the most common test used by the courts when deciding if a law or policy is constitutional. The Supreme Court will define and determine if the laws are constitutional and act as judicial review.
2. Judicial involvement in policy issues so controversial because each judge interprets the constitution in different way and sometimes they can do it for public benefit. They can choose to be judge base on judicial restraint or judicial activist.
In the US, the legislature formally establishes laws. The President establishes foreign policy, and matters of trade. The Supreme Court establishes legal policy in the form of precedent and common law. So, each branch, the Legislative, Administrative, and Judicial, each have some hand in establishing some form of formal policy.
Judicial activism was used because the Court ruled that the school policy prohibiting the students from wearing the arm bands to protest symbolically the Vietnam War violated the students' free speech rights. By overturning a policy of the government (the public school's policy), the Court exercised judicial activism.
Determining whether the policy is constitutional
The supreme court shapes public policy by ruling against or in the favor of some one in court.