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TALIYAH KESSEE
on Nov 16, 2024

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A goal of monetary policy and fiscal policy is to

A) offset the shifts in aggregate demand and thereby eliminate unemployment.
B) offset shifts in aggregate demand and thereby stabilize the economy.
C) enhance the shifts in aggregate demand and thereby create fluctuations in output and employment.
D) enhance the shifts in aggregate demand and thereby increase economic growth.

Monetary Policy

The process by which a central authority, typically a country's central bank, controls the supply of money in the economy, often targeting an inflation rate or interest rate to ensure economic stability and growth.

Fiscal Policy

Fiscal policy involves government adjustments to its spending levels and tax rates to influence a nation's economy, aiming to stimulate growth or curb inflation.

Aggregate Demand

The total demand for all goods and services within a particular market.

  • Acquire knowledge about the purpose and methods of fiscal policy in ensuring economic steadiness.
  • Gain insight into how monetary policy affects economic activities and outcomes.
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MONIQUE BEATONNov 17, 2024
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