Paper 2 Flashcards
1
Q
why does quantitative easing cause an increase in poverty and inequality (not mentioning inflation)
A
Increase in demand of assets increases the value of assets, most assets are owned by the rich therefore furthers the divide of rich and poor
2
Q
Define discretionary fiscal policy
A
A change in fiscal policy used to achieve a macroeconomic aim
3
Q
What did picketty argue for
A
a 5% wealth tax
4
Q
what are the two types of supply side policies
A
Interventionist and free market policies
5
Q
what can interventionist and free market supply side policies be further split up into?
A
labour market and product market
6
Q
what kind of supply side policy is privatisation and type of market do you see it in
A
- it is a free market policy
- typically found in the product market
7
Q
what kind of supply side policy is privatisation and type of market do you see it in
A
- it is a free market policy
- typically found in the product market
