Your Perfect Assignment is Just a Click Away

Starting at $8.00 per Page

100% Original, Plagiarism Free, Customized to Your instructions!

glass
pen
clip
papers
heaphones

The use of government policy in the economy is to keep law and order in the country and regulate all the money’s.

The use of government policy in the economy is to keep law and order in the country and regulate all the money’s.

1. 

The use of government policy in the economy is to keep law and order in the country and regulate all the money’s. A typical way the government tries to influence countries is by adjusting the price of borrowing. The federal government guides the overall pace of all economic activity. 

Due to the fact that the FED can execute monetary policy effectively, they can keep stability in their prices. The most appropriate time to use fiscal policy would be at a time when our country is in a recession. If inflation becomes too much we sould also use fiscal policy. Some specific tools used in monetary policy would include: interest rates, reserve equipment, and open market operations. As for fiscal policy, tools used to stimulate and stabalize would be: taxes and spending.

In my opinion and to conclude, I would say a combination of both monetary and fiscal policy is what I would use to stimulate aggregate demand. Each brings its own helpfulness at different times. Also both can influence the factors used to calculate it.

2. 

The economic crisis of the early 20s of the 1930s has affected both monetary and political reasoning. The results of this occasion ended up being of such an aspect that expansive agreement arose on states putting forth a valiant effort to keep such fiascos from reoccurring. In any case, even past this outrageous case, there is general arrangement that a steady and unsurprising monetary climate contributes considerably to social and financial government assistance. In the short-run, families like to have financial solidness with persistent business and stable livelihoods, permitting them to keep up with stable utilization over the long haul. Over the long haul, superfluous financial changes can lessen development, for instance by expanding the peril of speculations. A profoundly unpredictable monetary climate could likewise adversely affect the decision of schooling profiles and profession ways. So, by keeping a stable macroeconomic climate, financial arrangement can accordingly add to monetary development and government assistance.

a. When the economy is in a recessionary gap, a fiscal expansion (decrease in taxes, increase in government expenditure) can pull the economy out of this gap and bring the output back up to the full employment level. Or, a monetary expansion (increase in money supply) will have the same effect on the economy.

b. When the economy is facing a supply deficit and the output is lower than the potential level, and prices are high, an expansionary fiscal policy or monetary policy will increase the output but it will also further increase prices which will lead to high level of inflation in the economy. Hence, under this condition, a fiscal policy would be inappropriate to stabilize the economy.

c. In order to stimulate aggregate demand, the aim of the fiscal policy is to increase consumer expenditure. This can be done either by decreasing taxes which would lead to higher disposable incomes with the consumers and hence higher expenditure, or, this can be done by increasing government spending on infrastructure, consumer goods, healthcare, etc. which will also stimulate consumer expenditure.

d. An expansionary monetary policy involves increasing the money supply in an economy which leads to a lower rate of interest. At this lower rate of interest, borrowing becomes cheaper and this leads to an increase in private investment which stimulates aggregate demand.

e. Both fiscal and monetary policies are equally effective to stimulate AD and stabilize the economy. However, monetary policies are easier and more effective in terms of implementation and result achievement.


"Place your order now for a similar assignment and have exceptional work written by our team of experts, guaranteeing you A results."

Order Solution Now

Our Service Charter


1. Professional & Expert Writers: Eminence Papers only hires the best. Our writers are specially selected and recruited, after which they undergo further training to perfect their skills for specialization purposes. Moreover, our writers are holders of masters and Ph.D. degrees. They have impressive academic records, besides being native English speakers.

2. Top Quality Papers: Our customers are always guaranteed of papers that exceed their expectations. All our writers have +5 years of experience. This implies that all papers are written by individuals who are experts in their fields. In addition, the quality team reviews all the papers before sending them to the customers.

3. Plagiarism-Free Papers: All papers provided by Eminence Papers are written from scratch. Appropriate referencing and citation of key information are followed. Plagiarism checkers are used by the Quality assurance team and our editors just to double-check that there are no instances of plagiarism.

4. Timely Delivery: Time wasted is equivalent to a failed dedication and commitment. Eminence Papers are known for the timely delivery of any pending customer orders. Customers are well informed of the progress of their papers to ensure they keep track of what the writer is providing before the final draft is sent for grading.

5. Affordable Prices: Our prices are fairly structured to fit in all groups. Any customer willing to place their assignments with us can do so at very affordable prices. In addition, our customers enjoy regular discounts and bonuses.

6. 24/7 Customer Support: At Eminence Papers, we have put in place a team of experts who answer all customer inquiries promptly. The best part is the ever-availability of the team. Customers can make inquiries anytime.