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Monetary Policy Cheat Sheet (DRAFT) by

This is a draft cheat sheet. It is a work in progress and is not finished yet.

Definition

The change in the levels of government spending and government revenue to indirectly or directly manage the levels of aggregate demand, to achieve its macroe­conomic object­ives.
It affects the level of economic activity, resource allocation and income distri­bution.
It is a demand­-side, counter cyclical policy

What are the 2 major compon­ents?

Government spending
Taxation