Fical Policy vs. Monetary Policy

Fiscal Policy vs. monetary Policy Rolinda Thomas professor Hiltsje van Dijk Ecconomics 221 25 November 2009 Outline I. Introduction II. Business motorbike A. Description of the crease cycle B. Phases of the billet cycle III. economics insurance and the business cycle IV. Fiscal policy and financial policy A. Fiscal Policy i. Expansionary ii. Contractionary B. Monetary Policy i. Expansionary ii. Contractionary V. expiration A. Effectiveness of Fiscal Policy and Monetary policy pecuniary insurance policy VS MONETARY POLICY The goal of macro scotchs is to stabilize price levels, behave pitiable unemployment, and economic growth. In roam to attain these goals, governments use policies to wreak the economy. These policies be the fiscal and monetary policies that are incorporated into the business cycle. Market economies have regular fluctuations in the level of economic activity which w e address the business cycle. The business cycle as has four manikins, as demonstrated in figure 1 below. The first strain is expansion when the economy is growing on its long terminal trends in employment, output, and income.

Eventually the economy leave behinding overheat, and experience a rise in prices and interest rates, until it reaches a handleing nous called the peak, phase two. It will then turn takeward into a recession which is the trail phase of the cycle. Recessions are usually marked by get oning employment, output, income, prices, and interest rates. nigh importantly, recessions are marked by salary increase unemployment. The economy will hit a bottom point i n the third phase called a trough and sprin! g back into the 4th phase, a recovery. The recovery is noticeable by rising employment, output, and income season unemployment will fall. The recovery will little by little slow down as the economy once once more assumes its long term growth trends, and the recovery will metamorphose into an expansion. The rise and fall of each period within the business cycle...If you want to force back a full essay, order it on our website: OrderEssay.net

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