• What is Monetary Policy?
• What is Inflation?
• Briefly explain the three types of inflation
• Explain two causes of inflation - demand pull and cost push.
• Explain how the Bank of England uses monetary policy to achieve low inflation.
• Identify the current rate of inflation and interest rates.
• what Fiscal Policy is and how Government use it to achieve low inflation and low unemployment?
• Provide an example - explain how a reduction in government spending would reduce inflation?
• Provide an example - explain how an increase in government spending can increase employment (think back to the positive multiplier).
• Explain what Unemployment is and identify the different types.
• Explain the effects of unemployment on individuals and the economy.