The Economic Policy Mix (HSC SSCE Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What do macroeconomic policies primarily influence in the economy?
What do macroeconomic policies primarily influence in the economy?
Aggregate demand
What is the economic policy mix?
What is the economic policy mix?
Combination of macro & micro policies
During which phase does economic output rise above the long-term trend?
During which phase does economic output rise above the long-term trend?
Boom periods
Which is a goal of macroeconomic management?
Which is a goal of macroeconomic management?
Low unemployment
Why are macroeconomic policies called counter-cyclical?
Why are macroeconomic policies called counter-cyclical?
They work against the cycle direction
Which policy tool is used during boom periods to reduce economic activity?
Which policy tool is used during boom periods to reduce economic activity?
Higher tax rates
How do higher interest rates affect the economy during a boom?
How do higher interest rates affect the economy during a boom?
Discourage borrowing & spending
Which is an expansionary policy used during recessions?
Which is an expansionary policy used during recessions?
Lower interest rates
What is a key limitation of macroeconomic policy?
What is a key limitation of macroeconomic policy?
Cannot address structural problems
What does supply-side economics focus on increasing?
What does supply-side economics focus on increasing?
Aggregate supply