Macroeconomic Policy

In this lesson you will learn about the tools available to Congress and the Federal Reserve to combat problems facing the U.S. economy.  Congress, through taxing and spending, and the Federal Reserve, through the use of monetary policy, looks to influence Aggregate Demand bringing the economy back to Full Employment. 

• First we will strengthen your knowledge of fiscal and monetary policy by reviewing the concepts as well as looking at how the government dealt with past recessions. 
• Next you will graph recessionary and inflationary gaps and identify the policies to restore full employment.
• Finally, you will demonstrate your comprehension of policy by evaluating another group’s graphs and explanations.