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Fiscal policy meant to decrease inflation Monetary policy meant to decrease prices Fiscal policy meant to decrease unemployment Monetary policy meant to pull the economy out of a recession A fast or exponential increase in the general price level [Choose] Expansionary Contractionary Tight Money Hyperinflation Easy Money [Choose]

Question

Fiscal policy meant to decrease inflation
Monetary policy meant to decrease prices
Fiscal policy meant to decrease unemployment
Monetary policy meant to pull the economy out of a recession
A fast or exponential increase in the general price level
[Choose]
Expansionary
Contractionary
Tight Money
Hyperinflation
Easy Money
[Choose]

Fiscal policy meant to decrease inflation Monetary policy meant to decrease prices Fiscal policy meant to decrease unemployment Monetary policy meant to pull the economy out of a recession A fast or exponential increase in the general price level [Choose] Expansionary Contractionary Tight Money Hyperinflation Easy Money [Choose]

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MaxMaster · Tutor for 5 years

Answer

<p> Fiscal policy meant to decrease Contractionary inflation. Monetary policy meant to decrease Easy Money unemployment. Fiscal policy meant to decrease inflation Hyperinflation. Monetary policy meant to pull the expansionary economy out of a recession. A fast or exponential increase in the general price level represents Hyperinflation. </p>

Explain

<p> This question pertains to both fiscal and monetary policy. It's structured in such a way that the correct responses when matched to the phrases will form coherent economic strategies that correspond to the situations presented. The goal of these policies can be either contractionary or expansionary.<br /><br />"Fiscal policy meant to decrease inflation" encapsulates fiscal strategies typically done through changes in government spending or taxation to moderate the economy. By reducing government spending or increasing taxes, the demand in the economy can be decreased to counter inflation.<br /><br />"Monetary policy meant to decrease unemployment" comprises strategies employed by a central bank, such as managing interest rates or money supply to influence the state of the economy. In this context, to facilitate demand and stimulate business activity which could decrese unemployment, expansionary (easy) monetary policies, like lower interest rates, increase in commercial bank money or executed open market operations are used.<br /><br />The "Fiscal policy meant to decrease Hyperinflation" implies severe and typically accelerating inflation, which is combated either by stopping the issuance of excessive public money or developing recovery plans from the financial crisis.<br /><br />"Monetary policy meant to pull the economy out of a recession" refers to expansionary monetary policies (like easy-money policy)i.e., measures to increase the total supply of money in the economy rapidly descreasing interest rates.<br /><br />"A fast or exponential increase in the general price level" points to Hyperinflation, an economic scenario posing the condition of rapid inflation where the cost of goods and services increase drastically and people's purchasing power falls.</p>
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