How do governments manage their economy and how effective are their policies?
We will cover three units in one! Yes, that's correct. Here we study
3.5 Monetary Policy
3.6 Fiscal Policy
3.7 Supply Side Policy
Conceptual understandings
Government INTERVENTION attempts to achieve macroeconomic objectives through a choice of polices
Political, economic, social and environmental factors are INTERDEPENDENT and will influence the effectiveness of government policies
Monetary Policy
Monetary Policy (aisc2)
3.5 Aims.pdf
3.5 Extra Essays.pdf
3.5 Key Concepts.pdf
3.5 Crib.pdf
Fiscal Policy
The Role of Fiscal Policy (asic)
3.6 Aims.pdf
3.6 Extra Essays.pdf
3.6 Key Concepts.pdf
3.6 Crib.pdf
The Keynesian Multiplier
The Keynesian Multiplier (aisc2)
Crowding out
Crowding Out (asic2)
Automatic stabilizers
Automatic stabilisers (aisc2)
Supply Side Policy
Supply Side Policies (aisc2)
3.7 Aims.pdf
3.7 Extra Essays.pdf
3.7 Key Concepts.pdf
3.7 Crib.pdf
Policy Clash (aisc2)
Putting it all together
Can we "have our cake and eat it?"
Can we achieve all goals at once?
Theory of Knowledge: Questions and Connections
Can political beliefs and ideologies affect a person’s preference for one particular policy over another?
When evaluating economic policies, how important are cultural differences?
How much statistical data should economists use in determining the reliability of any economic policy result?
Economists and those who use economic theory may disagree with each other about the outcome of economic policies. On what basis might we make judgments about their relative conclusions?