Monetary and Fiscal Policy, Macroeconomic Fluctuations and Macroeconomic Equilibrium

As an assistant researcher in economics, your job is to analyze the impacts of the change in fiscal and monetary policy instruments that accompany the change in economic conditions. With this in mind, address the Assignment questions on the impacts of monetary and fiscal policies on aggregate demand and short run macroeconomic fluctuations.

Review the following videos before starting this Assignment:

·                   Chapter 21 “If It’s Better to have Higher Output and Lower Unemployment, then Why Doesn’t the Government Use Monetary and Fiscal Policy to Expand Aggregate Demand as Much as Possible?”

·                   Chapter 22 “Is there Any Way to Measure “Expected Inflation”?”