Monetary and Fiscal Policies
Ensure the economy continues to operate at potential GDP , governments use fiscal and monetary policies to lower unemployment rates and to control prices.
Discuss the primary goals of expansionary and contractionary fiscal policies and their effects on unemployment rates, inflation rates, interest rates, private investment, and GDP.
Discuss the goals of expansionary and contractionary monetary policies used by the Federal Reserve Bank and the approaches used to achieve each policy.
Discuss the effect of each policy on GDP, price level, private investment , and net trade.
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