How well does stabilization policy work on demand shocks? Supply shocks?
Give this one a try later!
attempts by the federal government to keep the economy healthy; includes
monetary and fiscal policies
1. reduce severity of recession
2. lower excessively strong expansion
NOT EFFECTIVE WITH AGGREGATE SUPPLY SHOCK
doesn't work with supply shocks!!!!
Government Debt: causes and consequences
, Give this one a try later!
k
Balanced budget (cyclically adjusted budget balance) vs budget deficit vs budget
surplus
Give this one a try later!
how much the gov money has to spend: equal, debt, surplus
budget deficit: borrows funds
Classical model: assumptions, framework, outcomes
Give this one a try later!
classical economists: gov substitutes for private sector
trade off, not expansion
What is monetary policy and how is it used?
Give this one a try later!
managing the economy by altering the supply of money and interest rates
fiscal policy: decided by government
Give this one a try later!
attempts by the federal government to keep the economy healthy; includes
monetary and fiscal policies
1. reduce severity of recession
2. lower excessively strong expansion
NOT EFFECTIVE WITH AGGREGATE SUPPLY SHOCK
doesn't work with supply shocks!!!!
Government Debt: causes and consequences
, Give this one a try later!
k
Balanced budget (cyclically adjusted budget balance) vs budget deficit vs budget
surplus
Give this one a try later!
how much the gov money has to spend: equal, debt, surplus
budget deficit: borrows funds
Classical model: assumptions, framework, outcomes
Give this one a try later!
classical economists: gov substitutes for private sector
trade off, not expansion
What is monetary policy and how is it used?
Give this one a try later!
managing the economy by altering the supply of money and interest rates
fiscal policy: decided by government
