### Illustrate what effects would their combined actions have

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Simulataneous Fiscal and Monetary Policy

Suppose the Fed wanted to reduce aggregate demand (to fight inflation) and the president wanted to increase total expenditure (to fight unemployment). What kind of action would each take? NOTE: There are 2 separate entities here with 2 separate goals. You need to tell me what policy would be initiated by EACH entity separately.) What effects would their combined actions have on GDP? What effect would this have on your industry?

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