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What kind of fiscal policy is needed to reduce unemployment

Assignment Help Macroeconomics
Reference no: EM132257978

Question:

Complete the questions below that are based on your chapter readings.

1. a. What is fiscal policy? What kind of fiscal policy is needed to reduce unemployment problem?
b. What is monetary policy? What kind of monetary policy is needed to fight inflation problem?

2. Write an essay on debt and deficit and include answers to the following in your essay:

What is budget deficit and how is it related to Government debt?

What is cyclical adjustment to deficit and how does it help to understand the stance of fiscal policy?

What is crowding out? How does budget deficit crowd out investment?

Why is a high level of government debt is a matter of concern?

Verified Expert

The following paper illustrates the meaning of fiscal and explains how it can solve the problem of unemployment. A definition of monetary policy has also been provided, along with the mention of which method to use if inflation is to be fought off. An essay on debt and deficit has also been formulated, which addresses several issues such as the relationship between budget deficit and government debt, the cyclical adjustments to the deficit, the crowding out effect, and finally, the issues that might arise due to a high level of government debt. This document has been prepared using Microsoft Office Word.

Reference no: EM132257978

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