Evaluate the use monetary policy to aid the economy's recovery just after a recession.

Paragraph 1 – define key terms and set the scene! (let the examiner know that you understand the question)
Monetary policy is the manipulation of interest rates and money supply to influence levels of AD in the economy. In an economic recovery, actual GDP is below potential GDP. Therefore, the actual GDP is growing below the trend rate. This suggests that the economy is experiencing levels of demand-deficiency – therefore spending needs to rise and demand-side policy needs to be employed.
Paragraph 2 – An explanation of policies to highlight student knowledge (including diagrams and relevant real-life examples are ideal for high marks!) 
Monetary policy can be used by ensuring that interest rates are low and act as an incentive for people to spend rather than save. When interest rates are low, it is less attractive to save and more attractive to borrow money. If for example, there is no fear in the UK housing market, then low-interest rates will encourage people to take out mortgages which will contribute to a booming housing market, which should help give people the confidence to spend more as house prices begin to rise. This process is called the wealth effect.
Paragraph 3 – Evaluation is essential to score top marks (discuss the pros and cons of each policy) Remember a chain of explanation will help with in-depth analysis.
For monetary policy to be successful, there needs to be high levels of confidence in the economy. This will allow consumers to engage in more spending whether it be from rising income through house prices or cheaper commercial loans. In an economic recovery, confidence is low but beginning to rise, therefore monetary policy may be limited in its success. For example, as BofE transmits low-interest rates across commercial banks, there is no cannot guarantee that consumers will behave accordingly, and start to increase their spending as soon as interest rates fall or money supply increases. Furthermore, commercial banks must also be in a liquid enough position to lend money to people who want to borrow. Therefore, there is a chance that monetary policy could be limited in its success further.
More points should be included in the essay with chain explanations to ensure a spectrum of thought has been put into the response.
The conclusion may consist of a summary of your policy analysis/evaluation.