Microeconomic policy Flashcards
1
Q
Types of Microeconomic Policy
A
- Supply-side Policy
- Monetary Policy
- Fiscal Policy
2
Q
explain fiscal policy
A
Touch n GO
tax and government spending
3
Q
What aspects does the Monetary policy touch?
A
- Interest rate
- Money supply
- Exchange rate
- Credit regulations
4
Q
What is the objective of Monetary policy
A
Influence AD
5
Q
Supply-side policy objective
A
- Increase AS
6
Q
What are the tools of SS policy?
A
- Cut income tax
- Cut corporate tax
- Increase spending on education and training
- Trade union reform
- Privatization
- Support for technological improvement
7
Q
What is the purpose of these policies?
A
to tackle inflation
8
Q
What you should discuss in Fiscal policy
A
- Discuss more about demand
- Less about supply
