Influence IR And MS = Growth Flashcards
1
Q
Monetary policy what and why (3)
A
Expansionary
QE = loans = injection = stimulates economy
AD shifts = economic growth because output has risen
2
Q
Money policy bad why
A
Creates demand pull inflation = w shaped recession
3
Q
When is inflation bad (2)
A
Above 2% = target
Inflation relative to international competitors
4
Q
Supply side policy (2)
A
Shift LRAS = long term
Stimulate economy by increasing FoPs
