Directions: Use the given scenarios and the information you have learned about Fiscal and Monetary policy to complete the questions that follow Over the past 3 years, prices in Belarus have risen by 4%, as overall economic growth has increased by 5% while unemployment rates are 1.3%. Aram is finding that all goods, even necessities cost more at the stores. He is worried he may have to cut back on certain purchases. The Business Cycle and the Problem a.      What stage of the business cycle is the economy currently in? Blank 1 Blank 2   b.     What is the current problem in the economy? Blank 3

Directions:
Use the given scenarios and the information you have learned about Fiscal and Monetary policy to complete the questions that follow

Over the past 3 years, prices in Belarus have risen by 4%, as overall economic growth has increased by 5% while unemployment rates are 1.3%. Aram is finding that all goods, even necessities cost more at the stores. He is worried he may have to cut back on certain purchases.

The Business Cycle and the Problem

a.      What stage of the business cycle is the economy currently in?

Blank 1

Blank 2

b.     What is the current problem in the economy?

Blank 3

c.      Does it need money in or out of the economy?

Blank 4

d.     What type of monetary policy is that?

Blank 5

e.      What type of fiscal policy is that?

Blank 6

f.      Doing any of these will

Blank 7

the money supply and availability of credit.