For macroeconomic policy (either monetary or fiscal policy), what is more important - achieving low unemployment rates or low inflation rate? Explain.
For macroeconomic policy (either monetary or fiscal policy), what is more important - achieving low unemployment...
WEEK 6: MONETARY POLICY AND FISCAL POLICY A healthy economy typically has low rates of unemployment and steady prices. Low rates of unemployment means that the economy is operating at its full potential. To ensure the economy continues to operate at potential GDP (full capacity where all savings are invested in production functions, and where all those who wish to work can find a job, and all other factors of production are fully utilized in the production function), governments use...
Describe the role of policy mix of fiscal and monetary policy actions in stabilizing the inflation, unemployment and RGDP growth for the economy 6. Describe the role of policy mix of fiscal and monetary policy actions in stabilizing the inflation, unemployment and RGDP growth for the economy 6.
eopunents are and how they affect pe ear ve relationship between inflation and the unemployment rate. ch 14, notes) New classical economists argued that anticipated monetary and fiscal policy d no effect on output (policy ineffectiveness postulate) and potentially caused a misallocation of resources in the long run. Explain why they believe these two ideas. ch 1 eopunents are and how they affect pe ear ve relationship between inflation and the unemployment rate. ch 14, notes) New classical economists argued...
According to adaptive expectations theory, expansionary monetary and fiscal policies to reduce the unemployment rate are O useless in the long run. O useless in the short run O ineffective on the price level O None of these. QUESTION 4 1 points Save According to the Phillips curve, a more expansionary macro-policy that causes inflation to be greater will: O place downward pressure on prices. O reduce unemployment. O reduce output O reduce the natural rate of unemployment. 1 pointsS...
(a)Which is more effective between fiscal policy and monetary policy in tacking inflation and tackling economic recession? (b) Discuss fully the relationship between the quantity theory of money and money demand
“Choosing a point” on the Phillips Curve, and conducting monetary and fiscal policy so that the economy gets to that combination of unemployment and inflation is not always a viable strategy. Why?
Fiscal Policy: Government can control the economy in a big way by adjusting its expenditure. The group of mechanisms using expenditure form the fiscal policy. When government spends more it can lead to more demand and that means more price increase. This means both high growth and high inflation. And it works in the reverse too. Thus, governments try to spend more during periods of low growth & low inflation and cut spending during periods of high growth & high...
Compare and contrast the consequences – intended and unintended – of different monetary policy actions of the Federal Reserve Board to achieve macroeconomic goals of stable prices, low unemployment, and economic growth. What effects can occur with different Federal Reserve actions (such as increasing money supply or raising interest rates)?
1950's Monetary Policy Examine the monetary policies in place at the start of the 1950's in relation to their effects on macroeconomic issues. For instance, consider the discount rate set by the Fed, the rates on reserves, open market operations, and so on. Analyze new monetary policy actions undertaken by the U.S. government throughout the 1950's describing their intended effects, using macroeconomic principles to explain the actions. Explain the impact of the new monetary policy actions on individuals and businesses...
monetary policies are more flexible and easier to deploy than fiscal policy . monetary policy also has a more immediate impact and disrupt less the existing patterns of government expeniture and investment . Question in five double space pages long , to what extent do these policies affect the USA political economy and investment of the nation?