Graded Classwork Y12 - Economics Name: 1. Decide whether the following statements are true or false and explain why. (2 marks) a) Deflation is negative inflation. b) The imposition of exchange controls is an expenditure switching policy. 2. Complete the following table: (18 marks) Fiscal policy Monetary policy Supply-side policy Intention To influence aggregate demand Policy measures Decisions on the interest rate, money supply and the exchange rate Example of a policy Reduction in corporation measure designed to tax reduce demand-pull inflation Example of a policy An increase in income tax measure to reduce a rates current account deficit A reason why a policy High optimism may mean Privatised energy firms measure designed to that a rise in the interest with market power may reduce inflation may fail rate may not reduce raise prices. consumer expenditure Table 1 Different economic policies