Document page
Economics IGCSEPDF 104
118 pagesrevision 46932
PDF 104
Page image rendered from the stored file at 110 dpi; it sharpens as you zoom. Outlines are placed from each region’s stored position on the page (612 × 792 pt).
readable
Source of this text: embedded text layer. The better of the embedded text and OCR is kept.
5.5 Macroeconomic Policies
Definition & Explanation
Key Terms
Fiscal Policy
Monetary Policy
Supply-Side Policy
●
●
●
●
●
●
●
●
Improves productive capacity and efficiency of the economy.
Includes education, deregulation, investment incentives.
Fiscal,Monetary, Supply-side, Interest rate, Government budget.
Conductedby the central bank using interest rates and money supply.
Lower interest rates boost demand; higher rates control inflation.
Fiscal,monetaryandsupply-side policies are used to achieve economic aims.
Involves changes in government spending and taxation to influence economic activity.
Used to manage demand, reduce unemployment, and control inflation.