Economics A-Level
Transmission Mechanisms
What Transmission Mechanisms means in Economics A-Level, as defined for Pearson Edexcel.
Definition of Transmission Mechanisms
Check what you remember
Read the wording for your board, then hide it and explain Transmission Mechanisms in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
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
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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 termsA week of Premium from your first lesson · Then the free plan continues · No card, no charge