Solved Use Of Discretionary Policy To Stabilize The Economy Chegg Com

Solved 1. Use Of Discretionary Policy To Stabilize The | Chegg.com

Solved 1. Use Of Discretionary Policy To Stabilize The | Chegg.com The following questions address the issue of how monetary and fiscal policies affect the economy, and the pros and cons of using these tools to combat economic fluctuations. Monetary policy involves the management of the money supply and interest rates by the central bank to control inflation and stabilize the currency. fiscal policy, on the other hand, involves the use of government revenue collection (taxation) and expenditure (spending) to influence the economy.

Solved 1. Use Of Discretionary Policy To Stabilize The | Chegg.com

Solved 1. Use Of Discretionary Policy To Stabilize The | Chegg.com In order to stabilize the economy, policymakers often consider the use of monetary policy, fiscal policy, or a combination of both. monetary policy involves managing the money supply and interest rates, while fiscal policy refers to government spending and tax policies. The following questions address the issue of how monetary and fiscal policies affect the economy and the pros and cons of using these tools to lesser economic fluctuations. The following questions address the issue of how monetary and fiscal policies affect the economy, as well as the pros and cons of using these tools to combat economic fluctuations. The following questions address the issue of how monetary and fiscal policies affect the economy, as well as the pros and cons of using these tools to combat economic fluctuations.

Solved 1. Use Of Discretionary Policy To Stabilize The | Chegg.com

Solved 1. Use Of Discretionary Policy To Stabilize The | Chegg.com The following questions address the issue of how monetary and fiscal policies affect the economy, as well as the pros and cons of using these tools to combat economic fluctuations. The following questions address the issue of how monetary and fiscal policies affect the economy, as well as the pros and cons of using these tools to combat economic fluctuations. Huge increases in government spending and record low levels of unemployment during the vietnam war era in the late 1960s led policy makers to fear that: a) the economy was growing too fast, which would increase unemployment. b) the economy was growing too fast, which would increase inflation. A combination of automatic stabilizers and discretionary fiscal policy produced the very large budget deficit in 2020. the pandemic caused high levels of unemployment, meaning less tax generating economic activity. During the covid 19 pandemic in 2020, the government implemented both automatic stabilizers, such as unemployment insurance, and federal discretionary fiscal policy. Explain and illustrate graphically how discretionary fiscal policy works and compare the changes in aggregate demand that result from changes in government purchases, income taxes, and transfer payments.

How Can Policy Stabilize the Economy? | Macroeconomics