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Evaluate the extent to which
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- Monetary policy as one of the macroeconomic policies is generally implemented in line with the cycle of economic activity (business cycle). Based on this, answer the following questions: a) Explain what monetary policy is appropriate to apply when there is a decline in GDP, economic growth slows and there is a decline in the prices of goods? b) Explain what monetary policy is appropriate to apply when there is an increase in the amount of real output or economic growth and an increase in the price of goods? Explain!One of the advantages of monetary policy is its speed and flexibility, but there are limitations. Explain.Advocate the benefits of using monetary policy to control the economy.
- Explain why low levels of economic confidence may hinder the effectiveness of monetary policy?What will an expansionary monetary policy do when the economy is in equilibrium? have no effect on both unemployment and inflation. reduce unemployment, but increase inflation. reduce unemployment, but have little effect on inflation. reduce both unemployment and inflation.Identify which are goals of monetary policy, and which are not. Goals of monetary policy Not goals of monetary policy
