Conflicts Flashcards

1
Q

What policies increase aggregate demand

A

Fiscal and interest

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2
Q

What policy improves aggregate supply

A

Supply side policies

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3
Q

What policy do u use if u want to reduce employment

A

Budget deficit
Reduce interest rates
Increase output

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4
Q

What policy do u use if u want to achieve economic growth

A

Budget deficit
Reduce interest rates
Increase output

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5
Q

What policy do u use if u want to reduce inflation

A

Budget surplus
Increase interest rates
Increase output

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6
Q

What policy do use if u want to reduce a balance of payments deficit

A

Budget surplus
Increase interest rates
Increase output

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