2.6.2 - Demand-Side Policies Flashcards
1
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What are Demand-Side Policies?
A
Policies designed to raise consumer demand, so that total production in the economy increases.
2
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What is Monetary Policy? Who decides it?
A
- Used by govt. to control the money flow of the economy
- Conducted by the BoE
3
Q
What is Fiscal Policy? Who decides it?
A
- Uses govt. spending and revenues from taxation to influence AD.
- Conducted by the govt.
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