Illustrate what are the impacts of an easy monetary policy

Reference no: EM1325837

Sample Question: Fiscal Policy

Can anyone help clarify? All I need are a couple of sentences to explain these questions.

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

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

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

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

Reference no: EM1325837

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