Government Policy (Grade 12 NSC Matric Economics): Flashcards
📚Flashcards
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Practise the cards
10 cards from this deck
Term for govt managing business cycles
Term for govt managing business cycles
Fine tuning
Two main govt policy categories
Two main govt policy categories
Monetary policy and fiscal policy
What monetary policy controls
What monetary policy controls
Money supply and interest rates
Quantity theory of money equation
Quantity theory of money equation
Money multiplier formula
Money multiplier formula
Three monetary policy instruments
Three monetary policy instruments
Open market transactions, interest rates, cash reserves
What fiscal policy uses
What fiscal policy uses
Government taxation and public spending
Fiscal response to low demand & high unemployment
Fiscal response to low demand & high unemployment
Increase spending, decrease taxes, or both
Fiscal response to high demand & inflation
Fiscal response to high demand & inflation
Decrease spending, increase taxes, or both
Effect of expansionary policies
Effect of expansionary policies
Help economy grow faster, create jobs