Please help me answer these! And please help with the graphs, since i\'m never g

Question

Please help me answer these! And please help with the graphs, since i'm never good with them....

Should policymakers use monetary policy, fiscal policy, or both in an effort to stabilize the economy? 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 lessen economic fluctuations The following graph shows a hypothetical aggregate demand curve (AD), short-run aggregate supply curve (AS), and long-run aggregate supply curve LRAS for the economy in April 2020. According to the graph this economy is in an expansion To bring the economy back to the natural level of output, the government could use a contractionary monetary or fiscal policy such as Shift the appropriate curve on the following graph to ilustrate the effects of the policy you chose above. 150 LRAS AS AD 130 110 AS 90 70 50 20 24 26 28 30 OUTPUT (Trillions of dollars)

Explanation / Answer

1) Recession because actual output is less than potential level

2) Expansionary monetary or fiscal policy

3) Decrease in taxation or increase in government spending

Expansionary fiscal policy includes increase in government spending or decrease in taxes.

4) lags

5) Provide drop down option of the last blank

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.