economics how to run an economy unit 2

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  • Created by: ishah
  • Created on: 11-05-13 14:18
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  • how to run economy
    • demand-side policy
      • monetary
        • interest
        • QE
      • fiscal
        • G s & spending
          • direct: income, corporation, national
          • indirect: excise, VAT
    • supply-side
      • deregulation - competition ^
      • loan guarantees
      • spending & education training
    • monetary policy
      • expansionary
        • unemplo recession
      • contractionary
        • inflation
    • manipulating money supply & interest rate
    • interest rate attempt to change spending
      • spending>output=inflation
    • interest changes
      • housing market
      • disposable income
      • confidence
      • exchange rates
      • credit user Cs
    • HOWEVS
      • interest elastic market most affect

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