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    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).
    Pearson Edexcel · Macroeconomic objectives and policies

    Topics that use Transmission Mechanisms

    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.

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    All Economics A-Level terms