2.6.2 Demand-Side policies 0.0 / 5 ? EconomicsMacroeconomicsASEdexcel Created by: 13clarkenCreated on: 18-04-19 10:29 10265349817 Across 1. ... : A change in ... causes a shift in aggregate demand. There is no investment with high ... and net exports are also affected by ... (8, 5) 7. If Government Spending (G) is greater than Tax (T), the government has a budget ... (7) 9. Direct ... has a greater impact on aggregate demand whilst indirect ... affects aggregate supply (3) 10. The ... control inflation and make interest rate decisions. They use: Changing the base rate of interest and Quantitative easing (3) Down 2. ... fiscal policy means tax is greater than government spending (14) 3. ... instruments include: Interest rates and quantitative easing (asset purchase) which are both controlled by the Bank of England (8, 6) 4. ... policies aim to achieve all the government macroeconomic policies. They are used to influence Aggregate demand and they include monetary policy and fiscal policy (6, 4) 5. ... is purchasing financial assets called long term loans called gilts. The are designed to directly inject money into the economy . The wealth effect will increase spending, boosting aggregate demand. Households will have portfolios with high value (12, 6) 6. ... fiscal policy means cutting tax or raising government spending or a combination of both (12) 8. ... instruments include: Tax and government spending (6, 6)
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