Explain how a decrease in government purchases


Discussion Post: Impact of Monetary Policy

In this lesson, you will learn about Monetary policy and the Federal Reserve.

Step I

Explain how a decrease in government purchases or an increase in taxes shifts the aggregate-demand curve to the left.

Step II

Much has been studied about the impact of Monetary policy.

Using MS Word, write a response to the following: The economy is at a standstill; consumers are not spending. What policy measure do you think the Fed (Monetary Authority) should take to get the economy going and put more money in the hands of consumers?

The response must include a reference list. Using one-inch margins, double-space, Times New Roman 12 pnt font and APA style of writing and citations.

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Microeconomics: Explain how a decrease in government purchases
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