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Cambridge AS & A Level Economics

5.3Monetary policy

Monetary policy in Cambridge AS & A Level Economics: what the syllabus expects you to know, the learning objectives and how to practise.
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Learning objectives

What the syllabus expects you to be able to do.

  1. 5.3.1Define monetary policy.
  2. 5.3.2Explain the tools of monetary policy: interest rates, the money supply and credit regulations.
  3. 5.3.3Distinguish expansionary from contractionary monetary policy.
  4. 5.3.4Use AD/AS analysis to show the impact of monetary policy on national income, real output, the price level and employment.

Lessons

  • Monetary policy

    55 min

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Sample question

A sample question on this topic. Answer it, check it, then read the worked answer.

Monetary policy: sample question

1 mark

Which of the following is an example of monetary policy?

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Turn Monetary policy into a strength.

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