Explain the strengths and weaknesses of fiscal policy

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Reference no: EM133448538 , Length: Words Count:500

Assignment:

Given that an economy is experiencing inflation in the 5-6% range and the Federal debt is at an all-time high, design an economic policy (that uses one or both of fiscal and/or monetary policy) to reduce the rate of inflation. Your paper should be a 400 to 500 words exploration about your proposed economic policy.

Make sure your exploration addresses the following:

Define what fiscal policy is
Explain the strengths and weaknesses of fiscal policy
Define what monetary policy is
Explain the strengths and weaknesses of monetary policy
Given that the actual policy choice is somewhat normative in nature, outline the policy you would choose to use and justify the policy based on the strengths and weaknesses of your options.
Describe which macroeconomic theory we reviewed you used as a basis to develop your policy.

Reference no: EM133448538

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