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?