Question 1:
Illustrate and describe the objectives of a government’s monetary and fiscal policies.
Question 2:
How successful is it in accomplishing these objectives?
Question 3:
Describe the link between inflation and unemployment?
Question 4:
The government announces which contractionary policies will be enacted in the view to decrease inflation. Use Friedman’s adaptive expectation framework to show the effects of such policies in both short run and long run.