Why do price levels increase when the government adopts fiscal or monetary policy to correct the economy when it faces a recession and high unemployment?

Q: What is the difference between monetary policy and fiscal policy ? Explain

A: Monetary policy is regulated by the central bank of country,whereas fiscal policy is regulated by…

Q: Would you say central banks are more reactive than proactive?

A: Central bank is the supreme bank of the nation.

Q: What are the potential problems with fiscal and monetary policies?

A: Concept Central banks manage the money supply in the economy through monetary policy. To bolster a…

Q: Complete the chart on benefits and drawbacks of monetary and fiscal policy

A: The usage of revenue raising and expenditure policies by the authority to ensure public income and…

Q: Who is in charge of fiscal and monetary policy, and how do each of these policies basically work?

A: Fiscal policy is the policy which is implemented by the government of the nation. Hence, charge of…

Q: Why would a Monetarist advocate a balanced budget amendment to the Constitution?

A: The monetarist school of economic thought is an important one amongst the different schools of…

Q: An increase in the money supply will shift aggregate demand to the left. TRUE OR FALSE?

A: An increase in money supply decreases interest rate, which increases investment. Higher investment…

Q: If you had to make a choice today between a policy that would head off increases in inflation or…

A: Phillip curve refers to the single equation economic model, named after William Phillips, tells an…

Q: What evidence have you discovered that points to the Classical, Keynesian, and Monetarist theories…

A: Classical economics adopts flexible prices both in the matter of goods and wages. Classical…

Q: How do changes in aggregate demand and aggregate supply might cause inflation in the economy?

A: The aggregate demand is the summation of the demand from all the economic agents. There are mainly…

Q: Select economic problem occuring from an increase in the money supply and explain what happens.

A: Money:Money refers to anything which can be accepted in exchange of commodity or in repayment of…

Q: Explain Fiscal and Monetary Stimulus?

A: Stimulus refers to the tempts to implement FiscalPolicies(FP) and Monetary Policies(MP) to stimulate…

Q: Differentiate between monetary and fiscal policy.

A: Monetary policy: When the policy measures are being taken by the central bank of a country in order…

Q: Why does the budget require a forecast of the economy? Under what circumstances would actual…

A: A budget is a financial document or the financial plan of an economy which includes the planned…

Q: Explain how policy makers can perfect their craft for the betterment of society

A: Public Policy is significant, on the grounds that it influences the ordinary person. Changes to…

Q: Why would most economists default usually first to monetary policy for stabilization before using…

A: An economy can be stabilized either by the government of the nation or by the central bank. A major…

Q: Why should monetary policy and fiscal policy be separately?

A: Fiscal policy: This is the government policy or tool by which it influences the country’s economy…

Q: What causes Monetary base and Monetary supply to increase?

A: Monetary Base: The monetary base refers to the sum of all currency that is in circulation and all…

Q: How is fiscal and monetary policy used by the Canadian government if the economy seems to be…

A: When the economy is slipping into recession the government needs to implement an expansionary fiscal…

Q: Explain the importance of timing when it comes to fiscal and monetary policy. Which has the…

A: The economies around the globe has various decision makers, and policy makers. The two major policy…

Q: If the market is expanding (booming), what monetary and fiscal policies could the government use to…

A: The monetary and fiscal policies that can be used to tackle a boom in the economy are explained…

Q: Is the Coronavirus Stimulus Package fiscal policy, monetary policy, or both?

A: The monetary policies are those policies that are enacted by the central bank of a country to…

Q: What is monetary policy?

A: Monetary policy is the policy adopted by the central bank of a country to control the money supply…

Q: What Is The Monetary Stimulus?

A: Stimulus: It refers to utilize money related or monetary strategy to invigorate the economy.…

Q: How can the Federal Reserve and government use monetary policy and fiscal policy to reduce the…

A: Federal reserve: It refers to that system that handles the country's growth by estimating the…

Q: Question 8 Which of the following are true about fiscal and monetary policy? There may be more than…

A: Fiscal policy and monetary policy are tools that enable government & central bank to manage the…

Q: how can i use fiscal and monetary policy

A: Depression is defined as a severe and prolonged recession. A recession is a situation of declining…

Q: Explain how inflation can control by using Fiscal and Monetary policy?

A: Inflation is the gradual loss of a currency's buying value over time. The increase in the average…

Q: *Does monetary or fiscal policy have a longer time lag?  Why?

A: Monetary policy is defined as the policy adopted by the central bank of the country to influence the…

Q: Which one is better at dealing with inflation: demand-side or supply side policies?

A: The demand-side(D) and supply-side(S) policies are policies used by the government and the monetary…

Q: Should Monetary and Fiscal Policymakers Try to Stabilize the Economy? Explain.

A: Yes, facing booms and depression is something wrong for any economy and stability is necessary which…

Q: Which of these is an alternative to monetary policy and aims to reduce inflation?

A: alternative to monetary policy is fiscal policy which is done by government of a country which…

Q: Why should the government not try to make inflation zero?

A: Inflation is the rise in the overall level of prices in an economy.

Q: how should policy makers respond to unemployment, inflation and decreased output

A: Unemployment :- When people are ready to work but economy is unable to serve them employment. It…

Q: Which of the following represents the maximum amount the economy can produce while maintaining price…

A: In an economy, GDP is computed using different approaches, such as potential, nominal, real, and…

Q: Suppose wages and prices are flexible, people form their expectations rationally, and they…

A: Based on the policy ineffectiveness proposition, people can anticipate a policy and take measures…

Q: Provide a political economic analysis of fiscal and monetary policies in terms of their different…

A: Fiscal Policy: Fiscal policy is adopted by the government to influence the economic condition of a…

Q: During the 2008-2011 financial crisis, two members of Congress proposed reinstituting the military…

A: The military draft was a system wherein all the citizens who are eligible were required to…

Q: what is the difference between monetary and fiscal policy?

A: Economic policies can be defined as a course of actions that governments take in the economic field.

Q: Who has a better chance at getting a high paying job as an economic policy advisor in a republican…

A: In the republican administration Keynesian economists have higher chance for getting a higher paying…

Q: What is Inflation? How it is measured? What Fiscal and Monetary policies are generally adopted to…

A: Inflation is the continuous rise in prices due to increased money supply in the market.

Q: What is monetary policy, and who is responsible for creating it?

A: Monetary policies are policies that are implemented to control the economy by a country's central…

Q: Monetary and fiscal policies directly affect the level of activities in the financial market.  Is…

A: Monetary and fiscal policies directly affect the level of activities in the financial market.  Is it…