What are fiscal and monetary policies? Do they have an immediate effect on the AD curve or the SAS curve?
What will be an ideal response?
Fiscal policy is defined as changes in government spending and taxation to affect the level of economic activity. Monetary policy consists of changing interest rates and changing the quantity of money in the economy in order to affect the level of economic activity. Both policies have an impact on the AD curve.
Economics
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Given a fixed amount of time, a decision to supply labor or not is simultaneously a decision to
a. demand goods and services or not. b. demand leisure or not. c. supply capital and land or not. d. supply leisure or not.
Economics
When MC is rising, AVC
A. must be rising. B. must be falling. C. may be falling or rising. D. will remain constant.
Economics