[Online Document Assignment:]
EIA Activity: Is Stabilization Policy Stabilizing?
Click on the links on the right to answer the following questions.
Use Link 1 to answer the following question. True or False: Over the last 30 years, using discretionary fiscal policy as a counter-cyclical tool has gained in popularity.
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Use Link 2 to answer the following question.True or False: The Gold Standard is considered to be an example of stabilization policy before World War II.
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Use Link 3 to answer the following questions. Which of the following are considered macroeconomic policy objectives of monetary policy?
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True or False: Maximum employment and price stability are considered the Federal Reserve’s duel mandate.
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| B. |
True or False: The Federal Reserve is not an independent agency of the federal government.
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True or False: The Federal Reserve plays a significant role in determining fiscal policy.
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Which stabilization policy, fiscal or monetary, was responsible for stabilizing the U.S. economy during the Great Recession? Explain.
Discuss any limitations of using fiscal or monetary policy to help stabilize the economy.
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