The economy goes into recession. Which of the following lists contains things policymakers could do to try to end the recession? a. Increase the money supply, increase taxes, decrease government spending b. Decrease the money supply, increase taxes, decrease government spending c. Increase the money supply, increase taxes, increase government spending d. Increase the money supply, decrease taxes, increase government spending

Explain what kind of fiscal policy and what kind of monetary policy are likely to reduce GDP.

Assuming a constant money supply, government expenditures can be financed by which of the following? Check all that apply. Borrowing   Money supply   Interest rate   Taxes

B. Move the Economy back to Potential GDP C. Do nothing D. Decrease Inflation, Lower Interest Rates, Increase Spending 33. If an Economy is producing below Potential GDP, the correct form of action is: A. Expansionary Monetary Policy combined with Contractionary Fiscal Policy B. Contractionary Monetary Policy combined with Expansionary Fiscal Policy C. Expansionary Monetary Policy or Expansionary Contractionary Policy or some Combination of both D. Contractionary Monetary and Fiscal Policy in the Same Amounts xt Predictions: On Editor Suggestions: Showing Et P + 51°

Match the term with the correct description. fiscal policy monetary policy money multiplier discount rate open market operations Question 6 the interest rate that the Fed sets for inter-bank borrowing represents the same thing as GDP the setting of the level of government spending and taxation by government policymakers 1/(1-MPC) deposits that banks have received but have not loaned out the interest rate that the Fed charges banks for short-term loans the purchase and sale of U.S. government bonds by the Fed

What should government do with its spending and taxes during a recession? Why?

Review the rubric to make sure you understand the criteria for earning your grade. Read the articles An Update on the Economy and Monetary Policy and Recent and Near-Term Fiscal Policy Write a five- to six-page paper answering the following regarding fiscal and monetary policy changes: Explain the key aspects of today’s monetary policy and how they are affecting GDP and aggregate demand/aggregate supply. Explain the key aspects of today’s fiscal policy and how they are affecting GDP and aggregate demand/aggregate supply. Are these policies being well coordinated today? In essence, are they both working in unison to address current economic conditions? Explain. What are these policies’ effects on aggregate supply and aggregate. Do understand they affect supply as well as demand. You must use a minimum of five sources for your research paper, at least three of which are scholarly. Use proper spelling, grammar, and APA formatting for your analysis paper. When you have completed your…

What are the important mechanisms that reverse the effects of a recession in a modern economy? (Check all that apply.) A. Labor supply increases due to an increase in real wages. B. The multipliers on wages and employment return to normal. C. Labor demand increases due to expansionary government policies. D. Labor demand increases due to market forces. What market forces might cause the labor demand curve to shift back to the right? (Check all that apply.) A. Technological advances encourage firms to expand their activities. B. The banking system recuperates and businesses are again able to use credit to finance their activities. C. Excess inventory has been sold off. D. Wage rigidity decreases.

The housing market has weakened during every recession except which of the following?   a. The Recession of 1974   b. The Recession of 1991   c. The Recession of 2001   d. The Recession of 2008

If taxes are lowered, we can expect supply-side economists to support the decision to do so because   a. government revenues will increase in the long run.   b. government spending will decrease in the long run.   c. the government will spend more in the short run.   d. economic growth cannot occur without it.