![]() There are two demand-side policies: fiscal policy and monetary policy.įiscal policy is a demand-side policy that is used to control government expenditure or taxation to influence aggregate demand. 2 DEMAND-SIDE POLICIES: FISCAL POLICYĭemand-side policies are policies that are used to influence aggregate demand. This chapter provides an exposition of macroeconomic policies. As these problems have adverse consequences for the economy, the government will use macroeconomic policies to solve the problems. ![]() ![]() In the event that the macroeconomic goals of the government are not achieved, macroeconomic problems will occur which include low or negative economic growth, high unemployment, high inflation and a persistent balance of payments disequilibrium. However, these goals may not be achieved due to domestic factors, external factors or both. Recall that the government has four macroeconomic goals: high economic growth, low unemployment, low inflation and a balance of payments equilibrium. The book is available in the major bookstores in Singapore. Students can refer to Economics – A Singapore Perspective for the diagrams. MACROECONOMIC POLICIES will be covered in economics tuition in the first, second, third and fourth weeks of term 2.
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