AB 204 Week 9 Discussion | Assignment Help | Kaplan University

AB 204 Week 9 Discussion | Assignment Help | Kaplan University 


Unit 9 Discussion Topic 1

Monetary and Fiscal Policy Applications

The Discussion topics focus on the effects of monetary and fiscal policy instruments on the aggregate demand in the economy, and the short-run trade-off between the rate of inflation and rate of unemployment. The specific areas of discussions include how monetary and fiscal policy instruments are used to change the AD, the differences between monetary and fiscal policy and their respective instruments, and policy measures to deal with the short-run trade-off between rates of inflation and unemployment in the economy.

Read Chapters 21 and 22, and remember to include references and links to the websites that are important contributors to your posts (comments).

Monetary and fiscal policy instruments are used to affect the aggregate demand (AD) in the economy.

a.    What is the difference between contractionary and expansionary monetary policy? What is the difference between contractionary and expansionary fiscal policy? How does each policy affect the AD in the economy?

b.    What are the benefits and major problems of the fiscal policy and monetary policy?

 

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