How does a fall in aggregate demand affect prices, interest
rates and output in the long and short-run (Giving reference to the
IS-LM AS-AD model throughout).
What causes the lags in the effect of monetary and
fiscal policies on aggregate demand? What are the implications of
these lags for the debate over active versus passive
policy?
Monetary and fiscal policy instruments are used to affect the
aggregate demand (AD) in the economy.
What is the difference between contractionary and expansionary
monetary policy? What is the difference between contractionary and
expansionary fiscal policy? How does each policy affect the AD in
the economy?
What are the benefits and major problems of the fiscal policy
and monetary policy?
Monetary and fiscal policy instruments are used to affect the
aggregate demand (AD) in the economy.
What is the difference between contractionary and expansionary
monetary policy? What is the difference between contractionary and
expansionary fiscal policy? How does each policy affect the AD in
the economy?
What are the benefits and major problems of the fiscal policy
and monetary policy?
4. State all the appropriate fiscal and monetary policies when
the aggregate demand curve is in range A. Do the same for range C.
Explain
There was no diagram accompanying it. I assume this is a
conceptual diagram type deal, but I don't understand it which is
why I posted it
In
terms of Macroeconomics, compare and contrast fiscal and monetary
policies by what ways they can specifically complement one another
and reinforce the Macro-stabilization process.