19- economic factors: economic policy Flashcards
1
Q
What is the multiplier effect?
A
knock on effect for a change in demand for a product
2
Q
What is fiscal policy?
A
conducted by government through tax and public spending
3
Q
What is monetary policy?
A
by the monetary authority to control interest rate and price stability
4
Q
What is a credit crunch?
A
a sudden shortage of funds for lending, leading to a decrease in available loans
5
Q
What is the supply side policy?
A
aim to improve the economies overall productivity capacity by;
focusing on supply not demand
