What is fiscal policy?

The use of government spending and taxation to influence aggregate demand

To reduce demand-pull inflation, a government could use which fiscal measure?

Raise taxes to reduce aggregate demand

It lowers the cost of borrowing, raising consumption and investment and so aggregate demand

Because it is a small, open economy where trade is large relative to GDP and capital flows freely

Lower the local-currency price of imports, easing imported inflation

The Monetary Authority of Singapore (MAS)

Investing in education and training to raise workers' productivity

They raise the economy's productive capacity rather than its total spending

Can raise output and employment without causing inflation

They usually take a long time to work and can be expensive

Low unemployment (from boosting demand) and low inflation

The cause of the problem, the time available, the cost, the side effects and the type of economy

Expansionary fiscal or monetary policy to raise aggregate demand

14questions. Pick an answer and you'll see why right away.

What is fiscal policy?
Which is an EXPANSIONARY fiscal policy measure?
To reduce demand-pull inflation, a government could use which fiscal measure?
How is a cut in interest rates intended to affect the economy?
Why does Singapore use the exchange rate, rather than interest rates, as its main monetary policy tool?
A managed APPRECIATION of the Singapore dollar helps to:
Which body conducts monetary policy in Singapore?
Which of these is a supply-side policy?
How do supply-side policies differ from demand-side policies?
A key advantage of supply-side policies over demand-side policies is that they:
Which is a limitation of supply-side policies?
Which pair of aims most clearly conflict with each other?
When choosing a macroeconomic policy, a good evaluation considers:
A government wants to fight a recession caused by weak aggregate demand. The most directly suitable policy is: