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2. What are the goals of expansionary monetary policy and contractionary monetary policy?



3. What are the differences between demand-side policies and supply-side policies?



4. How do government deficits cause a “crowding out” of private investment?



5. What is an automatic stabilizer, and how might an automatic stabilizer slow an economic recovery?



6. Is monetary policy or fiscal policy the more effective short-term approach? Explain your answer.

Respuesta :

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The goals of expansionary and contractionary monetary policy are to control the amount of money in the economy to influence economic activities.

What is the purpose of contractionary monetary policy?

It is introduced by the central bank to reduce the amount of money in a country. The purpose is to reduce economic activity and control inflation.

Expansionary monetary policy does the opposite and increases money supply in the economy so that economic activity is boosted.

Find out more on expansionary monetary policy at https://brainly.com/question/18939014

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