Monetary & Fiscal Policy

Two Differing Policies

Monetary vs Fiscal

The Two Policies

Monetary Policy is a term used to refer to the actions of central banks to achieve macroeconomic policy objectives such as price stability, full employment, and stable economic growth. Fiscal Policy is a broad term used to refer to the tax and spending policies of the federal government.


Q1: What are two tools for fiscal policy?

A:aggregate supply&demand

B: Low taxes & government spending

C: High taxes& Government expenditure

D:Spending & Taxation

Q2: What is affected by automatic stabilizers ?

A: Aggregate supply


C: Aggregate Demand

D: Net exports.

Q3: What would be the cause of Stagflation?

A: A change in AS

B: A negative supply change

C: A supply shock

D: Low economic growth


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Video Help

Works Cited (MLA Format)

Macro 4.1- Money Market(Monetary Policy)." YouTube. N.p., n.d. Web. 30 Apr. 2015.

Monetary and Fiscal Policy." Khan Academy. N.p., n.d. Web. 30 Apr. 2015.

Macro 3.7- Fiscal Policy: Non-discretionary vs Discretionary "AP Macro""YouTube. N.p., n.d. Web. 30 Apr. 2015.