Q1. Identify two strategies based on the fiscal and monetary policy that would encourage people to spend money in order to create economic growth. Fiscal and monetary policies are demand side policies that can be strategically employed for realizing economic growth by motivating consumers to spend money. It can be made possible by brining an increase in aggregate demand (AD) if the economy is passing through recession or growth is below the expected level (Pettinger, 2012). Monetary policy can be the most randomly used tool for impacting economic activity. To encourage AD, the Central Bank of a country can ...
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