Conflicts Flashcards
1
Q
What policies increase aggregate demand
A
Fiscal and interest
2
Q
What policy improves aggregate supply
A
Supply side policies
3
Q
What policy do u use if u want to reduce employment
A
Budget deficit
Reduce interest rates
Increase output
4
Q
What policy do u use if u want to achieve economic growth
A
Budget deficit
Reduce interest rates
Increase output
5
Q
What policy do u use if u want to reduce inflation
A
Budget surplus
Increase interest rates
Increase output
6
Q
What policy do use if u want to reduce a balance of payments deficit
A
Budget surplus
Increase interest rates
Increase output