Introduction: (a) define contractionary stabilization policy, expansionary stabilization policy, and the assigned stabilization policy; (b) discuss when a contractionary policy is needed and when an expansionary policy is called for-i.e., which economic problem(s) each aims to solve-; (c) list and define the policy instruments of the assigned policy; (d) mention who the decision-makers of the assigned policy are and describe the decision-making process;
B) Analysis of Contractionay Policy:describe how the assigned policy can be implemented as a contractionary policy;i.e., how its policy instruments are to be adjusted and show the corresponding graphical representations.
C) Analysis of Expansionary Policy:describe how the assigned policy can be implemented as an expansionary policy;i.e., how its policy instruments are to be adjusted and show the corresponding graphical representations.