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Aspects of expansionary and contractionary fiscal policy

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Reference no: EM131618121

1. Some economists argue that it is easier to resolve demand-pull inflation than it is cost-push inflation. Use the aggregate demand and aggregate supply model to explain this assertion.

2. Explain the aspects of expansionary and contractionary fiscal policy. During which phases of the business cycle would each be appropriate?

3. Why did the U.S. Congress establish the Federal Reserve as an independent agency?

4. What are the two conflicting goals of bankers? How do these conflicting goals get resolved in the federal funds market?

5. How does monetary policy affect equilibrium GDP? How can it address the problem of recession or slow growth? How can it address the problem of inflation (demand-pull)?

Reference no: EM131618121

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