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5.3.3 distinction between expansionary and contractionary monetary policy

What does expansionary monetary policy aim to correct?

A

It aims to lift a weak economy out of a negative output gap.

B

It aims to reduce cost-push inflation in a weak economy.

C

It aims to reduce a strong economy’s positive output gap.

D

It aims to lift a weak economy out of a balance of payments deficit.

5.3.3 distinction between expansionary and contractionary monetary policy Flashcards

  1. Intl A Level
  2. /Economics
  3. /5.3.3 distinction between expansionary and contractionary monetary policy

20 flashcards on CIE Intl A Level Economics 5.3.3 distinction between expansionary and contractionary monetary policy: the key terms and definitions you need to recall.