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5.3.4 AD/AS analysis of the impact of expansionary and contractionary monetary policy
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The monetary transmission mechanism

The monetary transmission mechanism

Monetary policy is the use of interest rates by a central bank to influence aggregate demand. The monetary transmission mechanism is the chain from an interest-rate change, through borrowing and spending, to changes in real output, the price level and employment.

5.3.4 AD/AS analysis of the impact of expansionary and contractionary monetary policy Lesson

  1. Intl A Level
  2. /Economics
  3. /5.3.4 AD/AS analysis of the impact of expansionary and contractionary monetary policy

Step-by-step lessons on CIE Intl A Level Economics 5.3.4 AD/AS analysis of the impact of expansionary and contractionary monetary policy. Each one builds up to exam-style questions.