Economics A-Level
Transmission Mechanisms
What Transmission Mechanisms means in Economics A-Level, as defined for Pearson Edexcel.
Definition of Transmission Mechanisms
The complex channels through which policy changes, such as adjustments in the base interest rate or changes in taxation, filter through the economy to affect aggregate demand (AD) and aggregate supply (AS).
Topics that use Transmission Mechanisms
- Macroeconomic objectives and policies (Pearson Edexcel A-Level)
Related terms
Using Transmission Mechanisms in the exam
Definition questions usually carry one or two marks, and examiners look for the precise wording. Write the definition from memory, check it against the version above, and then use the term in a longer answer on the same topic so it sticks.
Practise Economics questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
Start free
All Economics A-Level terms7 days Premium · Then free forever · No card, no charge