Differentiate between fiscal and monetary policy in brief.

Q: Fiscal policy is usually used during recessions because it is takes less time to implement than…

A: Recession:  The term recession refers to the period in which economic activities slow down and…

Q: State what economic policies (fiscal AND monetary) should be enacted to stabilize the economy in…

A: Monetary Policy refers to the policy the action taken by the central government of the country to…

Q: How can one apply monetary policy and fiscal policy to the business cycle, budget surpluses, and…

A: Monetary policy: Monetary policy are the policy measures that are being taken by the central bank of…

Q: Principles of good policy design  Managing economic challenges and coming up with policy solutions…

A: Trade-off is expressed as an opportunity cost often and it includes a sacrifice which must be made…

Q: Why does the budget require a forecast of the economy? Under what circumstances would actual…

A: A budget is a financial document or the financial plan of an economy which includes the planned…

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

A: Fiscal policy: - it is a tool of the government of a country in which the government adjusts its…

Q: Comparison and contrast strength and weaknesses of fiscal policy and monetary policy

A: A fiscal policy is used by the government in which they influence their spending and change tax…

Q: Does the monetary and fiscal policy have lags? Give your explanation

A: Expenditure lags for fiscal policy and monetary policyMonetary policy takes more time to stabilize…