Answer:
Demand-side policies refer to government actions aimed at stimulating consumer spending and increasing demand in the economy to combat a recession or inflation. Some of the positive effects of demand-side policies include increased employment opportunities, increased economic activity, and increased consumer confidence. When implemented effectively, demand-side policies can lead to a boost in economic growth and help to stabilize an economy. However, there are also some potential negative consequences of demand-side policies. These may include inflation, budget deficits, and trade imbalances, which can harm the economy in the long term. Additionally, demand-side policies may not be effective in stimulating the economy if consumer confidence is low, or if other factors such as a lack of investment or structural issues in the economy are present.
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