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United StatesEconomicsQuick questions

Unit 5: Long-Run Consequences of Stabilization Policies

Quick questions on Short-run stabilization policy - AP Macroeconomics Topic 5.1

2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?
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To close an inflationary gap, what should fiscal and monetary policy both do to aggregate demand? [1 point]
What is q2?
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Which expansionary policy lowers the interest rate, fiscal or monetary? [1 point]

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