Fiscal Policy and Monetary Policy
There are two types of Fiscal Policy (Expansionary Fiscal Policy and Contractionary Fiscal Policy) and two types of Monetary Policy( Easy and Tight)
Discuss Fiscal Policy and Monetary Policy and briefly explain each work. Briefly explain a scenario in the economy where fiscal policy or Monetary is warranted (i.e. can be generic like “the economy is growing faster, or slower than it should be” or can take a specific event in history like the current pandemic, housing collapse of 2008, 9/11 twin towers attack, or current inflation where the economy is red hot and unemployment is at a historical low.
Based on your scenario how should the federal government or Federal Reserve actions change (i.e. should the government increase or decrease spending and/or should the government increase or decrease taxes)? Why? What is hoped to accomplish with these government policies?
