Illustrtae what is the final impact of expansionary fiscal

Reference no: EM1329884

Effects of monetary and fiscal policy on inflation

1.If the market price is less than the equilibrium price, what is the relationship of quantity supplied to quantity demanded? What will happen to the price?

2. If the market price is greater than the equilibrium price, what will be created in the market, and what will happen to the price?

3. What is the final impact of contractionary fiscal policy on the price-level and real output?

4. What is the final impact of expansionary fiscal policy on the price-level and real output?

5.What are the impacts of a tight monetary policy on the price-level and real output? When would a tight monetary policy be appropriate?

6. What are the impacts of an easy monetary policy on the price-level and real output? When would an easy monetary policy be appropriate?

Reference no: EM1329884

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