kaplan Eco204 discussion
Monetary and Fiscal Policy ApplicationsThe Discussion topics focus on the effects of monetary and fiscal policy instruments on the aggregate demand in the economy, and the short-run trade-off between the rate of inflation and rate of unemployment. The specific areas of discussions include how monetary and fiscal policy instruments are used to change AD, the differences between monetary and fiscal policy and their respective instruments, and policy measures to deal with the short-run trade-off between rates of inflation and unemployment in the economy.Read Chapters 21 and 22, and remember to include references and links to the websites that are important contributors to your posts (comments). Respond to two of the following Discussion topics.Topic 1: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?Topic 2:There are differences in the ways monetary and fiscal policy instruments are formulated and implemented. How does fiscal policy differ from the monetary policy in the U.S. economic system? What are the major problems of the fiscal policy?Topic 3:Studies indicate that there is a short-run tradeoff between inflation rate and unemployment rate. If you were macroeconomic policy maker, how do you balance the short-run tradeoff between inflation rate and unemployment rate?
