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Fiscal and Monetary Policy Actions in the Short-Run

Ava Garcia

Ava Garcia

3 min read

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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.

AP Macroeconomics: Fiscal & Monetary Policy - The Night Before πŸš€

Hey! Let's get you prepped for the AP Macro exam. This guide is designed to be super efficient, hitting all the key points you need to know, especially about fiscal and monetary policy. Let's dive in!

Overview: Fiscal vs. Monetary Policy

It's all about keeping the economy on...

Question 1 of 5

Feeling confident? 😎 Which entity is in charge of Fiscal Policy?

The Federal Reserve (The Fed)

Congress & the President

The Treasury Department

State Governors