Government Policies

Fiscal Policy
Fiscal Policy is to do with the levels of taxation and government spending in order to influence Aggregate Demand.

Supply-Side Policy
Supply-Side Policy is to do with improving or expanding the supply, normally the supply of labour but it can also be directed towards technological advancement.

Monetary Policy
Monetary Policy is to do with managing the money supply. This is done through the central bank, and primarily involves managing inflation through changing the interest rate and introducing quantitative easing.