Describe what will happen to the interest rate and output with the implementation of following policies.(Use AD/AS model and use graph) Expantionary fiscal policy Contractionary monetary policy

Q: Fiscal policy is usually used during recessions because it is takes less time to implement than…

A: Recession:  The term recession refers to the period in which economic activities slow down and…

Q: An intended goal of expansionary fiscal policy and an easing of monetary policy is Select one: a.…

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Q: As a result of an economic policy change, interest rates and consumption rise but investment falls.…

A: Fiscal and monetary policies are two main tools to correct the economic imbalances . Where expansion…

Q: Give an example of a monetary policy action that could produce an increase in aggregate demand. Give…

A: AD(aggregate demand) is the sum of C(consumption), I(investment), G(government spending) in closed…

Q: Solve the attachment

A: The monetary policy is implemented using the tools of interest rates, open market operations, and…

Q: a)Using the short-hand symbols G, Y, Md, r and I to demonstrate the effects of an expansionary…

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Q: Raising taxes is   expansionary fiscal policy contractionary monetary policy contractionary fiscal…

A: Whenever the government increases the taxes, it will get money in return by making citizens pay…

Q: When there is a problem of a delay in terms of implementation of the fiscal policy, that would be…

A: Execution tag- The period between the conclusion of one task and the beginning of a different…

Q: I need help with these two. True or false questions.  Fiscal policy is the set of policies that…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: In the liquidity trap case where the LM schedule is nearly horizontal   a. both monetary and fiscal…

A: The monetary policy is completely ineffective because the demand for money is completely/ perfectly…

Q: An increase in the budget deficit is the result of:

A: Fiscal policy- It is the use of the government budget for affecting the economy. Government spending…

Q: Fiscal Policy instruments include: a) quantitative easing b) money supply manipulation c)…

A: Fiscal policy is such a policy which is framed by the government that account for government…

Q: Match the following terms with their definitions.…

A: From the above information, we will match the following terms with their definitions-

Q: From 2008, how might monetary policy (as reflected in the OCR) have affected the degree of crowding…

A: Monetary policy refers to change in money supply and money demand by central banks through open…

Q: Advocates of fixed policy rules believe that   Discretionary policies can improve macro outcomes.…

A: Fixed policy rule refers to the situation when government officials beleives in some special set of…

Q: An increase in the budget deficit is the result of:  (2)    (a)  Expansionary monetary policy;…

A: Fiscal policy refers to the policies of government regarding public expenditure, revenue and…

Q: how the main instruments of macroeconomic policy, namely monetary and fiscal policy, are implemented…

A: The fiscal policy would result in the policy involved with the taxes, government expenditure and the…

Q: In the graph that you have drawn in question 1, what is the state of the economy? Using fiscal…

A: The graph depicts the short run and long run aggregate supply curve and aggregate demand curve. In…

Q: What is the importance of fiscal policy during times of economic recession?

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which of the following statements is true about joint optimal fiscal and monetary policy? "Despite…

A: Despite the need to raise government revenue in non-lump-sum manner obtaining economic efficiency…

Q: To fix a negative supply shock in an economy, ___________should be used.   a.  contractionary…

A: The economies around the globe are focused on maximizing the level of their growth, and development.…

Q: Assign the correct label to the corresponding events/ policy actions that occurred during the…

A: The use of a collection of revenue and expenditure being incurred by the government in order to…

Q: The reason why fiscal policy should be in tune with monetary policy when the economy is in the…

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Q: explain how monetary and fiscal policy is implemented and how they can be used to influence GDP and…

A: Both fiscal and monetary policy play a significant role in economic management, with direct and…

Q: Can you explain policy lags briefly and compare fiscal and monetarypolicies with respect to inside…

A: A policy lag implies the lag between the time when economic problem arises and the effect of the…

Q: Compare and contrast the strengths and weaknesses of fiscal policy and monetary policy

A: fiscal policy is the government tools to correct the instability of the economy . whereas monetary…

Q: What are the advantages and disadvantages of using expansionary monetary policy or expansionary…

A: Fiscal policy refers to the government policy that stabilizes th economy through bring changes in…

Q: Monetary policy is subject to longer​ ________ lags than fiscal policy. A. Decision and​…

A: The time it takes for the government and central bank to react to an adverse macroeconomic event…

Q: How is monetary policy linked with fiscal policy? Comment.

A:

Q: Explain the difference between fiscal policy and monetary policy. Explain also 2 advantages and 2…

A: Macroeconomics is a branch of economics which studies the economy as a whole while considering…

Q: Which of the following might increase the government budget deficit?     contractionary fiscal…

A: Government can have balanced budget, budget deficit or budget surplus. Government imposes tax to…

Q: Which of the following terms is used to describe the set of policies that relate to government…

A: Government taxes and spending influence economic circumstances, notably macroeconomic factors like…

Q: Assume an economy where the government embarks on an expansionary fiscal policy, explain the effect…

A: Fiscal and Monetary policies are used to tackle the macroeconomics conditions like aggregate demand,…

Q: Which of the following economic schools of thought promote the use of fiscal policies to stimulate…

A: Classicals believed that no government intervention is necessary and market adjusts itself.…

Q: compare fiscal and monetary policy in order the generate macroeconomic stability.(use graphs) IS-LM,…

A: IS-LM model  The IS-LM model is the graphical representation of the economy which may show the…

Q: The economy is experiencing negative GDP growth and high unemployment.  Which fiscal policy action…

A: Meaning of Fiscal Policy: The term fiscal policy refers to the situation under which the…

Q: Question 6: Compare and contrast the function of fiscal policy during short term and long term…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Q.1.1 An increase in the budget deficit is the result of: (a) Expansionary monetary policy; (b)…

A: Expansionary fiscal policy-  The expansionary fiscal policy is the increase in government…

Q: Identify each scenario as an example of expansionary fiscal policy, contractionary fiscal policy, or…

A: In order to influence and manage the nation's economy, the government adjusts its spending and…

Q: The rational expectations theory suggests that as the public learns more about the effects of fiscal…

A: Rational expectation theory suggests the economic agents have full information about the economy,…

Q: Which statement below is true of ONLY fiscal policy? Uses government expenditures to create demand…

A: The fiscal policy is the policy of the central government regarding the taxation and the government…

Q: Which statement below is true of ONLY fiscal policy? Uses government expenditures to create demand…

A: The government uses two types of macroeconomics policy which are fiscal and monetary policy. The…

Q: The 'automatic mechanism' can best be described as using fiscal or monetary policies to stabilize…

A: Automatic Mechanism is also known as self correction.

Q: ome recheck stimulus measures in all current policy forms. These economists focus on the damaging…

A: A monetary stimulus includes lowering down the rates of "interest" to stimulate or grow the economy.…