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  3. ZuAI AP College Board Macroeconomics
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Fiscal and Monetary Policy Actions in the Short-Run

Next Topic - The Phillips Curve
Study Guide Overview

This guide covers fiscal and monetary policy, focusing on how they influence Aggregate Demand (AD). It details how the government uses fiscal policy (taxes and spending) and the Federal Reserve uses monetary policy (interest rates, money supply) to stabilize the economy, including addressing recessionary gaps. Graphing AD shifts is emphasized.

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Previous Topic - Long-Run Consequences of Stabilization PoliciesNext Topic - The Phillips Curve

Question 1 of 8

Ready to flex your macro knowledge? 💪 Who is in charge of fiscal policy?

The Federal Reserve

The Government (Congress & President)

State Governors

The Treasury Department