economic policy Flashcards
1
Q
list the two types of economic policy
A
demand-side polices
supply-side policies
2
Q
what are demand side policies
A
Government policies which aim to influence aggregate demand.
3
Q
what are supply side policies
A
Government policies which aim to influence aggregate supply
4
Q
what is contractionary fiscal policy
A
its when the government raises taxes and cuts government spending , in order to decrease the budget deficit
5
Q
what is expansionary fiscal policy
A
when government increases expenditure and decreases tax to decrease the budget deficit
6
Q
what are fiscal policies
A
When the government uses tax and government spending to influence the economy.
7
Q
A
