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By purchasing this file, you agree not to make it publicly A) expansionary fiscal policy; shifts the aggregate demand curve to the left, increasing aggregate output B) contractionary fiscal policy; shifts the aggregate demand curve to the left, decreasing aggregate output C) expansionary fiscal policy; shifts the aggregate demand curve to the right, increasing aggregate output Project the definition of “Monetary Policy”: • Monetary Policy is the process by which the government, central bank, or monetary authority of a country controls the supply of money, availability of money, and rate of interest. government spending improves profit expectations among businesses. Practice multiple-choice questions with answers and explanations. What are the benefits of implementing fiscal policy to stabilize the economy? 16. 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By purchasing this file, you agree not to View Fiscal & Monetary Policy Worksheet. 14. 2. Fiscal Policy Worksheet Answer Key - Expansionary fiscal policy involves increasing and decreasing this will lead to a budget 3. The goal of monetary policy is either to encourage the growth of an economy or ensure stability in the value Refers to the increase in final income arising from any new injection of spending; the initial increase in government spending of 100$ might turn out to be 175$ worth of actual spending in the economy It is important to learn about real-world examples of fiscal and monetary policy because it helps us understand how these policies are implemented in practice and the impact they can have on the economy. Actions of federal government (congress): To influence and stabilize the economy. What are the costs of implementing fiscal policy to stabilize the economy? Part 4 - Article Analysis- An alternative to deficit spending is a policy called austerity. 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