Unit 2: How to stimulate the economy

A great summary from the BBC on different approaches the government can take to stimulate the economy and the problems associated with different approaches

http://news.bbc.co.uk/1/hi/magazine/7682887.stm

a) Explain how fiscal policy can stimulate growth
b) What are the problems with using fiscal policy?
c) Explain how monetary policy can stimulate growth
d) What are the problems with using monetary policy?