Macroeconomic Objective: Low Inflation
Task directions:
Each group will answer the questions according to their assigned macroeconomic policy tool. You will record your answers using google slides and share them with the rest of your classmates.
Each group will answer the questions according to their assigned macroeconomic policy tool. You will record your answers using google slides and share them with the rest of your classmates.
- Why is low inflation a macroeconomic objective?
- What are the possible causes of business cycle fluctuations?
- What are the possible consequences for a nation not being able to achieve low inflation?
Expansionary Policy
- During an economic contraction, why is low inflation not achieved?
- Using a diagram(s), show how FISCAL policy addresses an economic recession?
- What are the possible long-term effects to achieving low inflation as a result of the policy tool?
- Using a diagram(s), show how MONETARY policy addresses an economic recession?
- What are the possible long-term effects to achieving low inflation as a result of the policy tool?
- Using a diagram(s), show how SUPPLY-SIDE policy addresses an economic recession?
- What are the possible long-term effects to achieving low inflation as a result of the policy tool?
- Which expansionary policy tool best addresses the macroeconomic objective of low inflation? Why? How?
- Which expansionary policy tool is the worst in addressing the macroeconomic objective of low inflation? Why? How?
Contractionary Policy
- During an economic expansion, why is it bad that low inflation is over-achieved?
- Using a diagram(s), show how FISCAL policy addresses a hyper-inflation?
- What are the possible long-term effects to achieving low inflation as a result of the policy tool?
- Using a diagram(s), show how MONETARY policy addresses a hyper-inflation?
- What are the possible long-term effects to achieving low inflation as a result of the policy tool?
- Using a diagram(s), show how SUPPLY-SIDE policy addresses a hyper-inflation?
- What are the possible long-term effects to achieving low inflation as a result of the policy tool?
- Which contractionary policy tool best addresses the macroeconomic objective of low inflation? Why? How?
- Which contractionary policy tool is the worst in addressing the macroeconomic objective of low inflation? Why? How?