lowering interest rates
lowering intrest rates (A+(
The main goal of both fiscal and monetary policy is to stabilize the economy.
Both fiscal and monetary policy can affect real GDP, due to time-lag in wage and price adjustments. In general, however, fiscal policy has a much more direct effect on real GDP.
Aggregate demand is actually influenced mostly by the nation's monetary policy and fiscal policy, not so much by inflation. Aggregate demand is actually influenced mostly by the nation's monetary policy and fiscal policy, not so much by inflation.
both monetary and fiscal policy
lowering intrest rates (A+(
The main goal of both fiscal and monetary policy is to stabilize the economy.
Both fiscal and monetary policy can affect real GDP, due to time-lag in wage and price adjustments. In general, however, fiscal policy has a much more direct effect on real GDP.
monetory policy and fiscal policy both methods are used to control unemployment rate.
Both parties claim to have fiscal policies, even though these policies are different and even though neither party adheres to its policy with any rigor.
Expansionary fiscal policy refers to policies aimed at increasing demand and thus output. This is done by expanding/increasing government expenditure, reducing taxes or doing a bit of both.
Aggregate demand is actually influenced mostly by the nation's monetary policy and fiscal policy, not so much by inflation. Aggregate demand is actually influenced mostly by the nation's monetary policy and fiscal policy, not so much by inflation.
both monetary and fiscal policy
from my idea i think one think they both have in common is that they both run the economy for short term.
Monetary policy is not neutral in the short-run but neutral in the long-run. Besides, fiscal policy is not neutral in both short-run and long-run.
Both monetary and fiscal policy may be used to influence the performance of the economy in the short run. They share many of the same goals which are to: keep inflation low, maintain positive economic growth, and aim for full employment.
The Phillips curve actually does not technically exist, although a modified, expectations Phillips curve does hold empirically. Moreover, the curve demonstrates a trade-off between unemployment and inflation. Essentially, the premise is that fiscal policy cannot solve inflation and unemployment. However, the curve does not hold after the 1960s, and many case studies show fiscal policy can solve both issues to a degree, or at least increase both at the same time.