Fiscal and Monetary Policy (Edexcel A-Level Economics A): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What does fiscal policy involve?
What does fiscal policy involve?
Gov spending, taxation & borrowing
How does expansionary fiscal policy affect aggregate demand?
How does expansionary fiscal policy affect aggregate demand?
Shifts AD curve to the right
When does a government budget deficit occur?
When does a government budget deficit occur?
When spending exceeds tax revenue
Which type of tax is levied on income?
Which type of tax is levied on income?
Direct taxes
What can the government NOT do simultaneously?
What can the government NOT do simultaneously?
Control money supply & interest rates
The interest rate represents what economic concept?
The interest rate represents what economic concept?
Opportunity cost of holding money
What is the Bank of England's inflation target?
What is the Bank of England's inflation target?
2% CPI (±1 percentage point)
What is quantitative easing?
What is quantitative easing?
Bank of England purchasing assets
What happens if expansionary policy is used at full employment?
What happens if expansionary policy is used at full employment?
Only causes inflation, not growth
What mistake worsened the Great Depression?
What mistake worsened the Great Depression?
Government cut spending