Turn on thread page Beta

Edexcel Economics Unit 2 Demand side Policies watch

Announcements
    • Thread Starter
    Offline

    0
    ReputationRep:
    Can anyone explain really simply to me what a demand side policy is. What does it do, who does it affect and what does it aim to achieve. Its the one topic in economics that beats me.
    • TSR Community Team
    Offline

    21
    ReputationRep:
    TSR Community Team
    (Original post by Helpmepass1)
    Can anyone explain really simply to me what a demand side policy is. What does it do, who does it affect and what does it aim to achieve. Its the one topic in economics that beats me.
    Hey, just going to pop this in the economics forum for you.

    Demand-side economics is also referred to as Keynesian economics. It came about as a reaction to the Great Depression, and is concerned with preventing/mitigating economic recession.

    It aims to stimulate the economy through increasing demand for goods, whereas supply-side aims to increase supply. Here's a super simple example that expresses the idea:

    Lower taxes on the population -> people have more money to buy stuff -> more stuff made to meet demand -> more jobs created -> people have more money to buy stuff -> etc.

    A supply side policy on the other hand might lower taxes on business so that they produce more goods and create more jobs.

    Here's a useful explanation: http://www.wisegeek.org/what-is-dema...-economics.htm

    I'm sure someone else here is a bit more economics-savvy and will be able to give you a better explanation, but I hoped that helped a bit.
    • Thread Starter
    Offline

    0
    ReputationRep:
    (Original post by puddles the monkey)
    hey, just going to pop this in the economics forum for you.

    demand-side economics is also referred to as keynesian economics. It came about as a reaction to the great depression, and is concerned with preventing/mitigating economic recession.

    It aims to stimulate the economy through increasing demand for goods, whereas supply-side aims to increase supply. Here's a super simple example that expresses the idea:

    Lower taxes on the population -> people have more money to buy stuff -> more stuff made to meet demand -> more jobs created -> people have more money to buy stuff -> etc.

    A supply side policy on the other hand might lower taxes on business so that they produce more goods and create more jobs.

    Here's a useful explanation: http://www.wisegeek.org/what-is-dema...-economics.htm

    i'm sure someone else here is a bit more economics-savvy and will be able to give you a better explanation, but i hoped that helped a bit.

    this is perfect, thank you!!
 
 
 
Reply
Submit reply
Turn on thread page Beta
Updated: May 14, 2014

University open days

  • University of East Anglia
    All Departments Open 13:00-17:00. Find out more about our diverse range of subject areas and career progression in the Arts & Humanities, Social Sciences, Medicine & Health Sciences, and the Sciences. Postgraduate
    Wed, 30 Jan '19
  • Aston University
    Postgraduate Open Day Postgraduate
    Wed, 30 Jan '19
  • Solent University
    Careers in maritime Undergraduate
    Sat, 2 Feb '19
Poll
Brexit: Given the chance now, would you vote leave or remain?

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reply
Hide
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.