With COVID-19, many economies suffered from severe recession. To save their economies, a mix of monetary and fiscal policies was used in 2020. Explain how monetary policy and fiscal policy could be used to stimulate an economy under a recession. State their limitations under the COVID-19.
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Q: Explain in detail fiscal and monetary policy
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Q: When is it appropriate to use monetary and fiscal policy to stimulate or stabilize the economy?…
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- When is it appropriate to use monetary and fiscal policy to stimulate or stabilize the economy? please also include the reference for this question.What is the best combination of fiscal policies and monetary policies for a country like Japan whose price levels are increasing while unemployment is being controlled? a. Decrease taxes, increase government spending and increase money supply b. Decrease taxes, decrease government spending and decrease money supply c. None of these choice is correct d. Increase taxes, decrease government spending and decrease money supplyFiscal and Monetary Policies are different in that a)Only fiscal policy tools may include taxation and stimulus checks for a country residents b)Only monetary policy tools may include targeting the Fed Funds rate c)Only Congress is authorized to approve spending associated with fiscal policy d)All of the above
- Choose TWO of the four macroeconomic objectives studied such as Full employment, Price stability, A high, but sustainable, rate of economic growth. Keeping the balance of payments in equlibrium : State why governments / decision makers try to achieve the TWO macroeconomic objectives Identify key problems which may be encountered when attempting to balance these two objectives Evaluate the macroeconomic measures, employing fiscal and/or monetary policies, which could be taken to balance these two objectives. The structure of your answer to this question should include a brief introduction, main body, and conclusion which summarises your views.How relation with Gdp can be reliable indicator of standard of living and use fiscal and monetary policy for current macroeconomic issuesMyanmar experienced a 60 percent currency dropped within four weeks as the economy tanks since early of this year. This is due to the country facing a military coup since February 2021, which has led to political instability and the second wave of coronavirus infections in the country. The World Bank predicted the economy would slump 18 percent, which lead to the employment contraction and an increase in the number of poor. As an economist, analyze the fiscal and monetary policy tools that can be implemented to overcome the recession in Myanmar.
- Please answer all parts... When the pandemic hit at the beginning of 2020, everything came to a halt. In a single month, 17 million Americans lost their job, and the gross domestic product (GDP), which is how economists measure the total value of a country's products and services, declined by US$2.15tn (£1.55tn). Economists were hopeful that across the world government spending and monetary policy would keep the economy from totally collapsing. During the first wave of lockdowns and stay-at-home orders since December 2019, it was clear that industries that relied on in-person customers - like travel and some retail - were going to struggle, while others would more easily adapt to the "new normal". Tech-heavy companies that delivered products or services to people's homes—like Amazon, Netflix, and Shopify—thrived. To improve the impact of the pandemic, most countries adopted an expansionary monetary policy. The change in the real interest rate influenced the goods market. Aggregate…What were the monetary and fiscal policy responses to the Great Recession? Discuss their effectiveness and how the policy contributed to GDP growth.ASAP compare monetary and fiscal policy in classical and keynesian model. Be precise
- Q5. Officially, a recession is considered to be: (Pick one answer) A. Six months of increasing inflation B. Two quarters of decreased output C. Six quarters of decreased output Q7. When current output is less than potential output, the economy must have which of the following? (Pick one answer) A. Trade deficit B. Rise in inflationary expectations C. Increasing wages D. Cyclical unemploymentFor this economy to produce Y1 and sustain it without inflationa) the price of oil must increase.b) the government must implement an expansionary fiscal policy.c) the government must implement an expansionary monetary policy.d) potential output must increase.In boosting macro and micro level business as a result of Covid-19, the government of Ghana as part of the strategy to restore confidence in the economy is providing a Ghc 1 billion stimulus package. Discuss fours ways that the financial market can benefit from this package