Suppose that survey measures of consumer confidence indicate a wave of pessimism is sweeping the country. If policymakers do nothing, what will happen to aggregate demand? What should the Fed do if it wants to stabilize aggregate demand? If the Fed does nothing, what might Congress do to stabilize aggregate demand?

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Q: None

A: Referencehttps://www.imf.org/en/Publications/fandd/issues/Series/Back-to-Basics/Monetary-Policy

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Q: How will a change in the money supply affect aggregate demand?

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Q: Explain the difference between fiscal policy and monetary policy. What are some of the reasons these…

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