Discuss how both the fiscal and monetary policies in the United States and in the Bible relate to the model of aggregate demand and aggregate supply and the issues involved in implementing the policies.
What is a fiscal policy ?
What is monetary policy ?
In this scenario, the government manages the overall economy of the system acros the country.
Their main aim is to improve pricing and employment.
They use the help of fiscal and monetary policies to achieve this goal.
The aggregate demand plots the economic view of the supply and demand of money across the country.
The federal reserves adjust the money supply in US when it is rapidly increasing.
The aggregate demand is affected by fiscal policy by employment increase and all.
Hope this helps
please comment for doubts
Thanks
Discuss how both the fiscal and monetary policies in the United States and in the Bible...
Discuss how both the fiscal and monetary policies in the United States and in the Bible relate to the model of aggregate demand and aggregate supply and the issues involved in implementing the policies.
How fiscal policies work? A key feature in AD/AS model is that economy can deviate from its potential output in the short run and eventually it will move comparable to this level. The Potential GDP/output is the maximum level of output a economy can produce given the existing resources and technology. Keynesian model assumes two types of policies to shift the AD/AS curves; namely, demand management policies and supply management policies. Both of these policies can be either monetary policies...
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...
During a recession, economists traditionally focus on monetary and fiscal policies to bolster the economy. a. Use the aggregate demand - aggregate supply (AD-AS) model in Panel A to show the effect of a tax cut, in the form of a tax rebate, given to each taxpayer. If inflation is high during a recession, some economists advocate cuts on marginal tax rates, to help avoid additional inflation. b. Use the AD-AS model in Panel B to show the effect of...
we know that United States is at least using both monetary policy (by lowering the interest rate to be 0%) and fiscal policy (by having 2 trillion USD ready for spending on infrastructures). Given the current condition with the corona virus pandemic still ongoing, and the lock down has not been lifted, How successful do you think the monetary policy (only) would be? and why? How successful do you think the fiscal policy (only) would be? and why? How successful...
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...
Assess how the current monetary policy and fiscal policy in the United States may impact your chosen company's financial performance in the short-term (6 months to 1 year). Justify your response. My Company: Walmart
Discuss two current and two future issues in United States healthcare policy, and include how the government is involved in each of these issues.
Monetary policy is managed by the Fed, or the central bank of the United States. Fiscal policy is managed by Congress, which votes on new taxes and government programs. Fiscal policy is hotly debated as to whether it is an effective means for stabilizing the economy. Many economists hold that it worsens the economy by increasing national debt and stripping purchasing power. To complete the Discussion activity, write a post that answers the following questions: Find two articles by respected...
briefly describe the difference between Fiscal & Monetary policies. Next identify at least one fiscal and one monetary policy that was instituted in March 2020 in response to the COVID-19 crisis to help with economic recovery. Using the AD-AS model, explain how these policies were expected to work.