Microeconomics and Decisions: 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 shift that might occur.

by

Microeconomics and Decisions

1. Select an economic situation, to focus on in your project. Indicate if it is “boom” or “bust.” You do not need to go into additional detail about the nature of the situation.
Note: Optionally, you may use the template from the Deliverables section to complete your project.
2. Using your selected event, make a list of possible fiscal and monetary policy responses to the economic situation o What are some potential fiscal policy responses?

  • What are some potential monetary policy responses?

3. 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 shift that might occur.