Policies

Question 0

Monetary policy

Answer 0

Central bank and/or government decisions on the interest rate, the money supply and the exchange rate

Question 1

Fiscal policy

Answer 1

The taxation and spending decisions of a government

Question 2

Supply-side policies

Answer 2

Policies designed to increase aggregate supply by improving the efficiency of labour and product markets

Question 3

Automatic stabilisers

Answer 3

Forms of government spending and taxation that change automatically to offset fluctuations in economic activity

Question 4

Discretionary fiscal policy

Answer 4

Deliberate changes in government spending and taxation designed to influence aggregate demand

Question 5

Monetary policy committee

Answer 5

A committee of the Bank of England with responsibility for setting the interest rate in order to meet the governments inflation rate

Question 6

Protectism

Answer 6

The protection of domestic industries from foreign competition

Question 7

Tariff

Answer 7

A tax on imports

Question 8

Quota

Answer 8

A limit on imports