13: Monetary and Fiscal Policy

Changes the government makes in spending or taxation to achieve particular economic goals

• monetary policy

• fiscal policy

• expansionary policy

• contractionary policy

An increase in government spending or a reduction in taxes

• monetary policy

• fiscal policy

• expansionary policy

• contractionary policy

An decrease in government spending or an increase in taxes

• monetary policy

• fiscal policy

• expansionary policy

• contractionary policy

The situation in which increases in government spending lead to reductions in private spending

• expansionary monetary policy

• crowding out

• expansionary policy

• contractionary policy

Changes the Fed makes in the money supply

• monetary policy

• fiscal policy

• expansionary policy

• contractionary policy

An increase in money supply

• monetary policy

• fiscal policy

• expansionary monetary policy

• contractionary monetary policy

A decrease in money supply

• monetary policy

• fiscal policy

• expansionary monetary policy

• contractionary monetary policy

The occurrence of high inflation and unemployment at the same time

• stagflation

• stop and go, on and off monetary policy

• expansionary monetary policy

• fiscal policy

An erratic monetary policy

• stagflation

• stop and go, on and off monetary policy

• expansionary monetary policy

• fiscal policy