Managing the Economy · Policy and Management

Monetary Policy

The role of the central bank in managing interest rates and the money supply.

Key Questions

  1. 1How do interest rate changes filter through to household spending?
  2. 2What incentives are driving this behavior in the banking sector?
  3. 3Why is central bank independence crucial for economic stability?

ACARA Content Descriptions

AC9EC11K11AC9EC11S07
Year: Year 11
Subject: Economics & Business
Unit: Managing the Economy
Period: Policy and Management

Suggested Methodologies

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Fiscal Policy

The use of government spending and taxation to influence the level of aggregate demand.

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Supply-Side Policies

Strategies aimed at increasing the productive capacity and efficiency of the economy.

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