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The five policy instruments

The five policy instruments

Fiscal policy changes government spending and taxation, while monetary policy changes interest rates and the money supply. Both usually influence aggregate demand, although fiscal policy also affects the public finances.

4.5.4 Macroeconomic policies in a global context Lesson

  1. A Level
  2. /Economics
  3. /4.5.4 Macroeconomic policies in a global context

Step-by-step lessons on Edexcel A A Level Economics 4.5.4 Macroeconomic policies in a global context. Each one builds up to exam-style questions. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.

Lessons