Macro 7 - Demand side policies

Question 1

Monetary policy

Answer 1

Uses interest rates and quantitative easing to influence AD

Question 2

Fiscal policy

Answer 2

Using government spending and revenues from tax to influence AD

Question 3

Expansionary policy

Answer 3

Fiscal or monetary policy which is aimed at increasing AD

Question 4

Contractionary policy

Answer 4

Fiscal or monetary policy which is aimed at decreasing AD

Question 5

Quantitative easing

Answer 5

When the central banks buys assets in exchange for money in an attempt to increase the money supply

Question 6

Monetary supply

Answer 6

Stock of money in the economy

Question 7

Monetary Policy Committee

Answer 7

9 economists who meet monthly to set the Bank rate as well as other monetary instruments