· M.E.. A.2 - The two main tools of macroeconomic policy include monetary policy, and fiscal policy, which involves _ spending. Answer. government | Course Hero. M.E.. A.2 - The two main tools of macroeconomic policy... School …
The two main tools of macroeconomic policy include monetary policy, and fiscal policy, which involves _____ spending. business government household capital market Question 8. Economists refer to the relationship that a higher price leads to a lower quantity demanded as the _____________. income gap market equilibrium
The two main tools of macroeconomic policy include monetary policy, and fiscal policy, which involves _____ spending. A. business B. export C. household D. capital market E. government (X) 2.
· See Page 1. Question 15. The two main tools of macroeconomic policy include monetary policy and fiscal policy, which involves __________ spending. Selected Answer: …
The two main tools of fiscal policy are taxes and spending. Taxes influence the economy by determining how much money the government has to spend in certain areas and how much money individuals should spend. For example, if the government is trying to spur spending among consumers, it can decrease taxes.
Fiscal policy is therefore the use of government spending, taxation and transfer payments to influence aggregate demand. These are the three tools inside the fiscal policy toolkit.
The correct answer is a) interest rates. The central bank uses this method alongside other monetary policy tools to alter the money supply.
Broadly speaking, monetary policy is either expansionary or contractionary. An expansionary policy aims to increase spending by businesses and consumers by making it cheaper to borrow. A contractionary policy, on the other hand, forces spending lower by making it more expensive to borrow money.
The primary tools of fiscal policy are: government expenditure and taxation.
Central banks have four main monetary policy tools: the reserve requirement, open market operations, the discount rate, and interest on reserves.
open market operationsThe Fed uses open market operations as its primary tool to influence the supply of bank reserves. This tool consists of Federal Reserve purchases and sales of financial instruments, usually securities issued by the U.S. Treasury, Federal agencies and government-sponsored enterprises.
Macroeconomists generally point out that both monetary policy — using money supply and interest rates to affect aggregate demand in an economy — and fiscal policy — using the levels of government spending and taxation to affect aggregate demand in an economy- are similar in that they can both be used to try to ...
In a _______________________, most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers and sellers.
microeconomics concentrates on the behaviour of individual consumers and firms while macroeconomics focuses on the performance of the entire economy. a term referring to the fact that for many goods, as the level of production increases, the average cost of producing each individual unit declines. economies of scale.
broad issues such as national output, employment and inflation.
An increase in government spending will increase the aggregate demand for goods and services in the economy.
In a _______________________, most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers and sellers.
The basic difference between macroeconomics and microeconomics is that: microeconomics is concerned with the trees (individual markets) while macroeconomics is concerned with the forest (aggregate markets).
C. Due to an economic recession, manufacturing firms began implementing layoffs of their workforces.
broad issues such as national output, employment and inflation.
Due to process innovations in computer chip manufacturing, the market supply of computers increased.
In a _______________________, most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers and sellers.
In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of: buyers and sellers. Specialization: can lead to an increase in overall production.
The basic difference between macroeconomics and microeconomics is: microeconomics concentrates on the behaviour of individual consumers and firms while macroeconomics focuses on the performance of the entire economy.
broad issues such as national output, employment, and inflation.
households receive income form businesses in exchange for providing inputs and use that income to buy goods and services from businesses. &. businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.
the profit maximizing decisions of an individual manufacturer.
D. microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment.
The basic difference between macroeconomics and microeconomics is: A. microeconomics concentrates on individual markets while macroeconomics focus es primarily on international trade. B. microeconomics concentrates on the behaviour of individual consumers while macroeconomics focuses on the behaviour of firms.
C. Due to an economic recession, manufacturing firms began implementing layoffs of their workforces.
B. is narrower in scope than microeconomics.
A. An increase in the price of automobiles will lead to a decrease in the quantity of automobiles demanded.
In a _______________________, most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers and sellers.
microeconomics concentrates on the behaviour of individual consumers and firms while macroeconomics focuses on the performance of the entire economy.
households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.
the profit maximizing decisions of an individual manufacturer.