You are the new Governor of State Bank of Pakistan after Reza Baqir.  For each of the situations listed below, decide if you would use Easy-Monetary policy or Tight-Monetary policy. Explain each scenario within 150 words. 1. RGDP is growing steadily, and prices are rising sharply. 2. The Pakistan is experiencing both high inflation and high unemployment.

Macroeconomics: Private and Public Choice (MindTap Course List)
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Chapter14: Modern Macroeconomics And Monetary Policy
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You are the new Governor of State Bank of Pakistan after Reza Baqir.  For each of the situations listed below, decide if you would use Easy-Monetary policy or Tight-Monetary policy. Explain each scenario within 150 words.

1. RGDP is growing steadily, and prices are rising sharply.

2. The Pakistan is experiencing both high inflation and high unemployment.

 

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