A level economics: policy conflictsWatch
Thank you 😊
Fiscal policy is a change in government spending and revenue.
By conflicts I think you mean macroeconomic objectives.
- low and stable inflation.
- economic growth.
- low unemployment rate.
- equilibrium/surplus in the current accounts balance of payments.
- rising living standards.
I'll give you a simple example so that you can let your brain do the rest
Monetary policy can be used; the MPC set high interest rates in order to discourage spending and increase saving. As interest rates increase, this acts as an incentive for consumers to save; however (this is where the conflict comes in) a big component in AD is consumption, if consumption decreases, so does economic growth, which is an objective.