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← Economics notes
Edexcel ·Economics·Cambridge AS & A Level Economics

Fiscal, Monetary & Supply-Side Policy

16 min read

Demand-side policies (fiscal and monetary), supply-side policies, how each works through AD/AS, and their strengths and limitations.

Macroeconomic policy objectives

Governments aim for stable low inflation, low unemployment, sustainable economic growth, a satisfactory balance of payments, and often a fairer distribution of income. Policies are demand-side (shifting AD) or supply-side (shifting AS).

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