The two different parties have two different ideas. Each party has the opportunity to block the most divirse measure proposed by the other party.
The fiscal policy strategy that the Federal government would most likely use to stabilize the economy during times of inflation is to raise taxes. However, they could also decrease government spending.
the federal reserve would try to lower nominal interest rate (monetary policy), not part of govt. The federal govt. would stimulate spending, either by lowering taxes or pumping money into the economy and spending more.
the goal is to get the consumer to increase their spending
the macroeconomic objectives being pursued by the government will greatly influence government spending . a government aiming to reduce employment and promote economic growth is likely to pursue an expansionary fiscal policy , thus increasing government spending where as a government aiming to control inflation is likely to follow a contractions policy thus reducing its spending.
The federal government would most likely implement expansionary monetary policy by lowering interest rates, making borrowing cheaper for both businesses and consumers. Additionally, it could increase government spending or provide tax cuts to boost disposable income, encouraging spending. These measures aim to stimulate economic activity by enhancing consumer and business confidence.
. When unemployment has decreased
When unemployment has increased
When unemployment has increased
layoffs at a large defense contracting company
It reduces the money available for private sector spending.
Increase government spending in order to stimulate the economy
layoffs at a large defense contracting company