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Which part of fiscal policy and/or monetary policy?

by | Nov 21, 2022 | Economics | 0 comments

 

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Instructions for Essay on Aggregate Demand, Supply, and the Macroeconomy-
In the PDF there’s a macroeconomic problem within an economy. Please write the paper solving each item listed in the problem. The paper should be at least two pages, double spaced, and 11 point font. Use MLA format. Doesn’t need sources but if so do, sources must be cited. I prefer a PDF so if possible could you send it in a PDF?
Economic Policy Letter
You’re a consultant with an independent economic research firm. The U.S. economy is represented in the graph on the PDF. It’s a Keynesian Aggregate Demand…Aggregate Supply Graph. Your job is to advise the Senate Banking Subcommittee on Economic Policy on the current state of the economy, their options for achieving full employment and full employment GDP, as well as the potential downsides of these actions. Be sure to include the following items in your letter:
Please type the introduction with the following points included-
*What is the main economic problem with the economy and, of the three macroeconomic goals, which are currently not being met in this economy? Make sure you include whether the problem is an inflationary gap or recessionary gap. Also, make sure you include the amount of the gap.
*According to the Classical model, what is the best policy for addressing the problem? What are the potential negative consequences of this approach?
*According to the Keynesian model, how might FISCAL POLICY be used to achieve the identified goal(s) and who is responsible for the policy? What are the potential negative consequences of this approach?
*You must include specific dollar amounts and make a minimum of two FISCAL POLICY recommendations.
* How might MONETARY POLICY be used to achieve the identified goal(s) and who is responsible for the policy? What are the negative consequences of this approach? *Would you recommend using Fiscal Policy and/or Monetary Policy? Which part of Fiscal Policy and/or Monetary Policy? Explain in detail your reason.
End with conclusion paragraph

 

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