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  • Revision of The Weekly Topics 48

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    Shahzad Hassan
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    This document contains responses to three questions about fiscal and monetary policy tools and their use in different economic conditions. It states that expansionary fiscal policy uses taxes and expenditures to shift the demand curve right and increase supply and prices during deflation. Contractionary fiscal policy shifts the demand curve left and decreases supply and prices. It also notes expansionary fiscal policy is used during deflation to increase the money supply, while contractionary monetary policy is used during inflation to control the money supply.

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    Revision of the weekly topics 48.docx

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    This document contains responses to three questions about fiscal and monetary policy tools and their use in different economic conditions. It states that expansionary fiscal policy uses taxes and expenditures to shift the demand curve right and increase supply and prices during deflation. Contractionary fiscal policy shifts the demand curve left and decreases supply and prices. It also notes expansionary fiscal policy is used during deflation to increase the money supply, while contractionary monetary policy is used during inflation to control the money supply.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    9 views1 page

    Revision of The Weekly Topics 48

    Uploaded by

    Shahzad Hassan
    This document contains responses to three questions about fiscal and monetary policy tools and their use in different economic conditions. It states that expansionary fiscal policy uses taxes and expenditures to shift the demand curve right and increase supply and prices during deflation. Contractionary fiscal policy shifts the demand curve left and decreases supply and prices. It also notes expansionary fiscal policy is used during deflation to increase the money supply, while contractionary monetary policy is used during inflation to control the money supply.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Ali Adnan FA19-bba-48

    Revision of the weekly topic


    Qno1.

    A. What are the tools of fiscal policy?


    Tax
    Expenditures

    B. Explain the difference between the expansionary and contractionary fiscal


    policy.

    In expansionary fiscal the demand curve shifted from left to right. And
    supply and price also increase.

    In contractionary fiscal policy the demand curve shifted from right to left.
    And supply and price also decrease.

    Qno2. If there is deflation which fiscal policy would be applied? Why?

    Expansionary fiscal policy because to high up the money supply in the market.

    Qno3. If there is inflation which monetary policy would be applied? Why?

    Contractionary policy applied because to control the money supply in the market.

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