If any time remains, start reviewing your macro notes. TEST NEXT WEEK.
Finals Period
TEST #7/8 (Two Questions)
Fiscal, monetary and supply-side policies
Homework: Work on IA
TEST QUESTIONS
Fiscal Policy a) Explain what might happen to the level of inflation if a government decides to move from a budget surplus to a budget deficit. b) “The lower the level of government spending, the better.” Evaluate this view.
Monetary Policy b) To what extent is an increase in interest rates the most effective cure for inflation?
Demand-side Policies (Fiscal and Monetary) b) Evaluate the view that demand-side policies are more effective than supply-side policies in reducing the level of unemployment. b) Evaluate the view that demand-side policies are the most effective method of increasing the level of national income. b) Evaluate the effectiveness of governments using demand-side policies to take an economy out of a recession.
Supply-side Policies b) To what extent can supply-side policies help in fighting inflation?
All Policies Unemployment b) Discuss policies that a government might use to reduce the levels of structural unemployment and cyclical (demand-deficient) unemployment. b) Evaluate government policies used to deal with cyclical unemployment.
Inflation b) Evaluate two government policies to reduce inflation.