Macroeconomic Policy Changes
Using your selected event, make a list of possible fiscal and monetary policy responses to an economic situation.
What are some potential fiscal policy responses?
What are some potential monetary policy responses?
Choose one of the fiscal policy responses from your list above. Explain how your chosen fiscal policy response will drive a change in the economy. (Approximately 250 words)
Explain the policy response in macroeconomic terms. Specifically, how might the policy affect the total demand for goods and services in the country? Describe the shifts that may occur.
Choose one of the monetary policy responses above and explain how your chosen monetary policy response will drive a change in the economy. (Approximately 250 words)
Explain the policy response in macroeconomic terms. Specifically, how might the policy affect the total demand for bonds in the country? Describe the shifts that may occur.
Describe the limitations of fiscal and monetary policies in achieving their intended goals. How might they not work as intended? (250–500 words)
