Unit 3.5 Government management of the economy – monetary policy

IB Economics: Unit 3.5 Government management of the economy – monetary policy

The government can use a demand management or demand side approach where it affects aggregate demand in the economy to achieve its macroeconomic objectives. The government demand management approach can be broken down into monetary policy and fiscal policy. This chapter considers how monetary policy can be used to try and achieve the governments macroeconomic objectives.The link to the attached pdf is revision material...


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