Why do price levels increase when the government adopts fiscal or monetary policy to correct the economy when it faces a recession and high unemployment?

Fiscal stance refers to

Which of the following supports the argument for hands-off policy? A. Monetary policy does not impact the economy. B. Fiscal policy does not impact the economy. C. Fine-tuning is not compatible with our design capabilities. D. The economy has been fairly stable since World War II.

If the U.S. government's budget deficits are increasing aggregate demand, and the economy is producing at a level that is substantially less than potential GDP, then: a) government borrowing is likely to crowd out private investment. b) an inflationary increase in the price level is in real danger. c) the central bank might react with an expansionary monetary policy. d) higher interest rates will crowd out private investment.

Which of the following actions would Adam Smith most likely have suggested?          The government should spend more on unemployment insurance and other social welfare programs and less on the military.          The government should borrow money from the private sector to increase the money supply.          The government should limit its interference in the economy when the economy turns poor.          When the economy turns poor, the government should intervene to help the economy recover.

 Should the Government be more or less involved in the economy

Who benefits from FDI?  Would you argue for or against a country blocking FDI? Why?  Give real-world examples to defend your arguments.

The government decides that it will cut taxes in an attempt to move the economy out of a severe recession

Do you think policy makers should attempt to stabilize the economy ? Why ?

Printing money to finance government expenditures is the principal method by which the U.S. government finances its expenditures imposes a "tax" on everyone who holds money causes the value of money to rise prevents the government from having to tax its citizens is a smart way to run a country