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Answer the following questions about monetary and fiscal policy on a google doc. You will find fill in the blank and short answer questions. Email a link to your google document to Ms. Georgi (This assignment is for participation only). Use today's lecture slides, the reading on monetary policy, the reading on fiscal policy, and the reading on famous economists, along with the internet, to help you answer these questions. You may work with your classmates to answer the questions, but you must each submit individual google documents with unique responses to the short answer questions.
- Describe the difference between monetary and fiscal policy.
- Describe how open market operations are used to influence the economy.
- Reserve requirements affect consumer demand because if banks are allowed to hold a smaller amount in reserves, they will have a greater amount of _____ available to ____ ___. (Answer).
- Describe how quantitative easing is used to influence the economy.
- Describe the difference between contractionary and expansionary monetary policy.
- Describe the difference between contractionary and expansionary fiscal policy.
- An extremley high level of aggregate demand will generate ____________ increases in the price level. (Answer)
- If there is too much economic growth and inflation (like the hyperinflation in Zimbabwe, 2008), what type of fiscal policies should be used in an attempt to slow the growth?
- Based on the information in the Famous Economists reading, describe the difference between John Keynes and Friedrich Hayek.
- Using the internet, identify three countries with high levels of government spending (per capita spending would be most accurate). List the countries and the yearly amount spent.
- Using the internet, identify a country with very high income taxes, and a country with very low income taxes.
- Google monetary or fiscal policy and write one fact you have learned online that you did not already read in the lecture slides or textbook selections.
- Write one or two questions that you still have related to monetary and fiscal policy. What are you confused about, or wondering about?