Explain the most appropriate monetary and fiscal policy for our economy right now. Please explain your reasoning using economic data that our economy is experiencing from the Bureau of Labor Statistics (www.bls.gov).
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Explain the most appropriate monetary and fiscal policy for our economy right now. Please explain your...
Now that you have an understanding of monetary and fiscal policy, in your own words explain why you would agree or disagree with the following statement: The government should not interfere if the economy is going into a recession; monetary and fiscal policy only create larger governments. You must show in your answer that you have read the chapters and speak specifically to the issues that arise per the Author on trade offs when using both policies as well as...
Use of discretionary policy to stabilize the economy Should policymakers use monetary policy, fiscal policy, or both in an effort to stabilize the economy? The following questions address the issue of how monetary and fiscal policies affect the economy and the pros and cons of using these tools to lessen economic fluctuations. The following graph shows a hypothetical aggregate demand curve (AD), short-run aggregate supply curve (AS), and long-run aggregate supply curve (LRAS) For the economy in May 2020. According to the...
Based on your understanding of government economic policy, which of the monetary or fiscal policy tools do you think would be most effective at improving the U.S. economy? Support your answer with evidence and/ or examples from the learning notes, readings, and in-class discussions in this unit. One to two paragraphs should be sufficient.
7. Use of discretionary policy to stabilize the economy Should the government use monetary and fiscal policy in an effort to stabilize the economy? The following questions address the issue of how monetary and fiscal policies affect the economy, and the pros and cons of using these tools to combat economic fluctuations. The following graph shows a hypothetical aggregate demand curve (AD), short-run aggregate supply curve (AS), and long-run aggregate supply curve (LRAS) for the U.S. economy in April 2020. Suppose the government...
Briefly explain the potential benefits of using monetary policy rather than fiscal policy to stabilise the economy (200 word limit).
Qu vestion 46 Not yet Given our discussions regarding monetary and fiscal policy, explain at least two reasons why we may tend to favor monetary policy over fiscal policy? You must thoroughly explain intuitively and feel free to offer any graphical analysis if warranted Paints out of 5.00 Flag
1. (a) (3 Marks) "A counter-cyclical fiscal policy has crowding out effects”. Explain with economic reasoning and appropriate diagram(s). (b) (3 Marks) Define open market operations, and explain how executing them can be used as a tool for the conduct of monetary policy. (c) (4 Marks) Use diagram to explain why do fiscal and monetary policies are ineffective in combating stagflation. How a stagflation be cured?
1.b. Fiscal policy is said to suffer from ‘crowding out’. Explain what this means and why it is a problem. Should the Federal budget always be balanced? 2. a. Describe the main goals of monetary policy and explain how a change in interest rates can affect the different categories of aggregate demand. (5 marks) b. You are the Reserve Bank Governor and are reviewing the following economic data: Real GDP growth rate: 4.2% Unemployment rate: 4.6% Inflation rate: 3.8% Determine...
Now that you have segmented the components on how fiscal and monetary policies can reduce recessionary and inflationary gaps, you must analyze how the consequences of the changes in fiscal and monetary policy instruments may be associated with the variations in the U.S. economic conditions. Provide examples based on your answers above to explain these consequences during a recession, and during inflationary times.
Question 2 Explain how the effectiveness of contractionary monetary policy (dM Fiscal policy (dg <0) depends on the magnitude of the response of NX to in r or dNX/dr. Make sure to provide your answer with the relevant mathematical equations, and economic interpretation. points) Question Two: Assume the following equations summarize the structure of an economy. с =C, +0.7(Y - T) са = 2,000 - 50 т * 150 + 0.15Y (M/P) 0.3Y - 10r M/P 3,000 2,000 -10r G...