Posted: February 10th, 2022

Discuss the primary goals of expansionary and contractionary fiscal policies and their effects on unemployment rates

Discuss the primary goals of expansionary and contractionary fiscal policies and their effects on unemployment rates, inflation rates, interest rates, private investment, and GDP.
Discuss the goals of expansionary and contractionary monetary policies used by the Federal Reserve Bank and the approaches (called monetary policy tools) used to achieve each policy. Also, discuss the effect of each policy on GDP, price level, private investment (investment in capital acquisition by firms and housing by households), and net trade.
In your opinion, which policy is more effective, and why?

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Discuss the fundamental objectives of expansionary and contractionary fiscal policies, as well as their consequences on unemployment, inflation, interest rates, private investment, and GDP.
Discuss the goals of the Federal Reserve Bank’s expansionary and contractionary monetary policies, as well as the tactics (known as monetary policy tools) employed to achieve each policy. Discuss how each policy affects GDP, the price level, private investment (capital acquisition by enterprises and housing by people), and net trade.

Which policy, in your opinion, is more effective, and why?

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