Macroeconomic Policy Changes
(Approximately 250 words)
- Demonstrate how changes to macroeconomic policies impact the economy.What are some potential fiscal policy responses?What are some potential monetary policy responses?
- Choose one of the fiscal policy responses from your list above. Explain how your chosen fiscal policy response will drive a change in the economy.
- Explain the policy response in macroeconomic terms. Specifically, how might the policy affect the total demand for goods and services in the country? Describe the shifts that may occur.
- Choose one of the monetary policy responses above and explain how your chosen monetary policy response will drive a change in the economy. (Approximately 250 words)
- Explain the policy response in macroeconomic terms. Specifically, how might the policy affect the total demand for bonds in the country? Describe the shifts that may occur.
- Describe the limitations of fiscal and monetary policies in achieving their intended goals. How might they not work as intended?
- Describe the impact of tariffs on trade. To do this, choose one of the examples from the articles in the Supporting Materials section. Using the article as a reference, describe how a tariff on that particular good could impact demand for it in the United States. Price (imported and domestic):