Question

Design an anti- recession stabilisation policy, involving both fiscal and monetary policies which is consistent with: (a) A relative decline in the public sector. (3 marks) (b) Greater income equality (4 marks) (c) A high rate of economic growth.

Answer 1

(a) A relative decline in the public sector.

A policy to maintain full employment levels.

(b) Greater income equality

A policy to stabilize prices and wages.

(c) A high rate of economic growth.

A policy to achieve or maintain a high rate of economic growth