Macroeconomic Aims
economic growth goes ？
fast and more
fiscal policy
government's policies about economic's develop
lower interest rates
help people borrow money easier
Inflation
Inflation commonly refers to a rise in the general price level over a period of time
If inflation goes too fast , how can the government help with fiscal policy
The government can raise taxes or spend less so people don’t spend too much money.
low unemployment means ?
most people haves a job (with their own opinion)
expansionary fiscal policy
expands demand
help bank
centuralbank let banks lend more
deflation
a contraction of economic activity resulting in a decline of prices
A thing both monetary and fiscal policy try to do for the economy?
Both aim to keep the economy stable by managing prices
price stability goes ?
→
(with a little variation）
government build schools， hospitals，……etc
gives people much more chances to have jobs
monetary policy
central banks manage money and interest rates to help the economy
disinflation
a reduction of prices intended to improve the balance of payments
If inflation are going to fast how can the government help with fiscal policy?
The government can raise taxes or spend less so people don’t spend too much money
what is price stability ?
a steady growth of price (or something like that, just make sure the answer include: a measurable price or steady……etc.)
give people less tax to pay
to help economic grow faster
raise interests when prices rise
so people borrow less
A moderate inflation rate
around 2% per year
How can central banks use monetary policy to end deflation？
They can lower interest rates to make borrowing easier so people would spend more money.
unemployment's altitude
causes inflation or not changing, economic growth……etc
why government lower taxes
people could buy more things to help economic grow
Changing interest rates
affect borrowing and spending
high inflation/ high deflation
bad
If the economy is slow how might monetary and fiscal policy work together？
Central banks might lower rates and the government cut taxes to help people spend more.