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IG2 - Macro - Policy Revision 2

The document provides a summary of fiscal, supply, and monetary policies as macro-economic tools aimed at preparing for mid-term exams. It outlines the objectives of these policies, including lowering inflation, reducing unemployment, and improving economic growth. The class structure includes reviews, notes, practice questions, and discussions to enhance understanding of these concepts.

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4 views17 pages

IG2 - Macro - Policy Revision 2

The document provides a summary of fiscal, supply, and monetary policies as macro-economic tools aimed at preparing for mid-term exams. It outlines the objectives of these policies, including lowering inflation, reducing unemployment, and improving economic growth. The class structure includes reviews, notes, practice questions, and discussions to enhance understanding of these concepts.

Uploaded by

7wy8tqy9qj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Early Series

IGCSE Economics
Summary on Fiscal , Supply & Monetary Policies

1
Today’ Class
Summary on Fiscal , Supply & Monetary Policies

Class aim: Review knowledge and understanding of


policies as tools to help the economy.

First - Review

Second -Introduce Today’s classroom


. Third - Notes: Review

Fourth - Practice questions

Fifth - Discuss answers

Summary

2
Second
Introduction
Summary on Fiscal , Supply & Monetary Policies

Macro-economic Policies

This class will combine the last three main chapters about macro-economic policy
tools with the aim of preparing for the mid-term exams next week. We prepare for the
test for the rest of the week.

3
Review
Fiscal Policy - page 228

2 3
Review
Monetary Policy - page 240

1 2

3
Review
Supply Side Policy - page 244

1 2

1. Lower Inflation
3 4 Shifting AS to the right will cause a lower price level. By making the
economy more efficient, supply-side policies will help reduce cost-push
inflation. For example, if privatisation leads to more efficiency it can
lead to lower prices.
2. Lower Unemployment
Supply-side policies can contribute to reducing structural, frictional and
real wage unemployment and therefore help reduce the natural rate of
unemployment.
3. Improved economic growth
Supply-side policies will increase the sustainable rate of economic
growth by increasing LRAS; this enables a higher rate of economic
growth without causing inflation.
4. Improved trade and Balance of Payments.
By making firms more productive and competitive, they will be able to
export more. This is important in light of the increased competition from
an increasingly globalised marketplace.
Review
Summary on Fiscal , Supply & Monetary Policies
Review
Summary on Fiscal , Supply & Monetary Policies
Review
Summary on Fiscal , Supply & Monetary Policies
Review
Summary on Fiscal , Supply & Monetary Policies
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Summary on Fiscal , Supply & Monetary Policies
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Summary on Fiscal , Supply & Monetary Policies
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Summary on Fiscal , Supply & Monetary Policies
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Summary on Fiscal , Supply & Monetary Policies
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Summary on Fiscal , Supply & Monetary Policies
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Summary on Fiscal , Supply & Monetary Policies

Discuss whether monetary policy measures can increase economic growth. [8]
Review
Summary on Fiscal , Supply & Monetary Policies

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