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Macroeconomic Policies : - Coggle Diagram
Macroeconomic Policies :
Demand Side Policies
Monetary Policy
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open market operations, quantitative easing, minimum reserve requirements, minimum lending rate
Fiscal Policy
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Expansionary
increases government spending, decreases personal income tax, decreases business taxes
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Supply Side Policies
Market Based
promotes well functioning, competitive markets. LRAS shifts to the right
encouraging competition, labour market reforms, incentive related policies
Encouraging competition : privatisation, deregulation, contracting private sector, anti monopoly regulation, trade liberalisation
Labour market reforms : Abolishing mimimum wage legislation, weakening power of trade unions, reducing unemployment benefits, reducing job security
Incentive : lowering personal income taxes, taxes on capital gains, interest income and business
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