AP (Advanced Placement) Macroeconomics Economic Growth & Productivity-Growth Policies Study Material (Page 1 of 5)

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Expansionary Monetary Policy: Helping the Economy Grow

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Find out how an expansionary monetary policy promotes economic expansion. The definition of expansionary monetary policy, the tools the Federal Reserve employs to implement the policy, and the implications of low interest rates for consumers and businesses are among the subjects covered.

Introducing Expansionary Policy

On a Saturday evening, a large city. Even if there are still a lot of people enjoying a good time in the downtown area, economic output has been declining over the past nine months. People are looking for ways to reduce their spending and have…

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Contractionary Monetary Policy: Slowing the Economy down

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The economy is deliberately slowed down by the contractionary monetary policy. Examine the operation of the policy and the measures the central bank use to reduce the money supply to thwart inflation.

An Inflationary Economy

  • In order to attain the objectives of sustained economic growth, high employment, and stable prices, the government has delegated responsibility to the central bank to regulate the supply of money in the economy. The central bank continuously examines the economy using a variety of indicators and …

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