Th2.6: Demand-Side Policies Flashcards
1
Q
What are demand side policies?
A
policies designed to manipulate consumer demand
2
Q
What is expansionary policy aimed at?
A
increasing AD to bring about growth
3
Q
What is deflationary policy aimed at?
A
decreasing AD to control inflation
4
Q
What is monetary policy?
A
where the central bank or regulatory authority attempts to control the level of AD by altering base interest rates or the amount of money in the economy
5
Q
What is fiscal policy?
A
use of borrowing, government spending and taxation to manipulate the level of aggregate demand and improve macroeconomic policy
