Directions: Read the following excerpts. Identify whether the policy action is fiscal or monetary and expansionary or c

[answerhappygod]

Directions: Read the followingexcerpts. Identify whether the policy action is fiscal or monetaryand expansionary or contractionary. Draw and label the change thatwould occur on the ADAS graph as a result of the policy actiondescribed in each. Identify what will happen as a result of thepolicy to the price level, employment, and real GDP. (Paperversion: Fiscal or Monetary PolicyActivity.docx DownloadFiscal or Monetary Policy Activity.docx)
Excerpt from FOMC Statement Released November 16, 1999
“The Federal Open Market Committee today voted to raise itstarget for the federal funds rate by 25 basis points to 5-1/2percent. In a related action, the Board of Governors approved a 25basis point increase in the discount rate to 5 percent.
Although cost pressures appear generally contained, risks tosustainable growth persist. Despite tentative evidence of a slowingin certain interest-sensitive sectors of the economy and ofaccelerating productivity, the expansion of activity continues inexcess of the economy's growth potential. As a consequence, thepool of available workers willing to take jobs has been drawn downfurther in recent months, a trend that must eventually be containedif inflationary imbalances are to remain in check and economicexpansion continue.”
Excerpt from Public Law 111-5 of the 111th Congress: Signed intolaw by President Obama February 17, 2009
“Making supplemental appropriations for job preservation andcreation, infrastructure investment, energy efficiency and science,assistance to the unemployed, and State and local fiscalstabilization. Be it enacted by the Senate and House ofRepresentatives of the United States of America in Congressassembled.
TITLE XII—Transportation, Housing and Urban Development, andRelated Agencies
…projects eligible for funding provided under this heading shallinclude, but not be limited to, highway or bridge projects eligibleunder title 23, United States Code, including interstaterehabilitation, improvements to the rural collector road system,the reconstruction of overpasses and interchanges, bridgereplacements, seismic retrofit projects for bridges, and roadrealignments; public transportation projects eligible under chapter53 of title 49…
… make improvements to power systems, air route traffic controlcenters, air traffic control towers, terminal radar approachcontrol facilities, and navigation and landing equipment…”
Excerpt from FOMC Statement Released December 12, 2012
“Information received since the Federal Open Market Committeemet in October suggests that economic activity and employment havecontinued to expand at a moderate pace in recent months, apart fromweather-related disruptions. Although the unemployment rate hasdeclined somewhat since the summer, it remains elevated. Householdspending has continued to advance, and the housing sector has shownfurther signs of improvement, but growth in business fixedinvestment has slowed. Inflation has been running somewhat belowthe Committee’s longer-run objective, apart from temporaryvariations that largely reflect fluctuations in energy prices.Longer-term inflation expectations have remained stable.
Excerpt from Public Law 103-66 of the 103rd Congress: Signedinto law by President Clinton August 10, 1993
“To provide for reconciliation pursuant to section 7 of theconcurrent resolution on the budget for fiscal year 1994. Be itenacted by the Senate and House of Representatives of the UnitedStates of America in Congress assembled.
Title XIII: Revenue, Health Care, Human Resources, IncomeSecurity, Customs and Trade, Food Stamp Program, and Timber SaleProvisions
…Subchapter B: Revenue Increases - Increases the marginal taxrate for certain higher incomes. Imposes a surtax on certain higherincomes.
Sec. 13203 Increases the tentative minimum tax for taxpayersother than corporations.
Excerpt from FOMC Statement Released January 27, 2021
“The COVID-19 pandemic is causing tremendous human and economichardship across the United States and around the world. The pace ofthe recovery in economic activity and employment has moderated inrecent months, with weakness concentrated in the sectors mostadversely affected by the pandemic. Weaker demand and earlierdeclines in oil prices have been holding down consumer priceinflation.
The Committee decided to keep the target range for the federalfunds rate at 0 to 1/4 percent and expects it will be appropriateto maintain this target range until labor market conditions havereached levels consistent with the Committee's assessments ofmaximum employment and inflation has risen to 2 percent and is ontrack to moderately exceed 2 percent for some time. In addition,the Federal Reserve will continue to increase its holdings ofTreasury securities by at least $80 billion per month and of agencymortgage‑backed securities by at least $40 billion per month untilsubstantial further progress has been made toward the Committee'smaximum employment and price stability goals.”
Identify fiscal or monetary policy.
view longer description
/ 1 pts
Identify expansionary or contractionary policy.
view longer description
/ 1 pts
Graphically show the likely impacts on the ADAS Model as aresult of the policy action.
view longer description
/ 4 pts
Explain what will happen as a result of the policy to the pricelevel, employment, and real GDP.
view longer description
/ 4 pts
Identify fiscal or monetary policy.
view longer description
/ 1 pts
Identify expansionary or contractionary policy.
view longer description
/ 1 pts
Graphically show the likely impacts on the ADAS Model as aresult of the policy action.
view longer description
/ 4 pts
Explain what will happen as a result of the policy to the pricelevel, employment, and real GDP.
view longer description
/ 4 pts
Identify fiscal or monetary policy.
view longer description
/ 1 pts
Identify expansionary or contractionary policy.
view longer description
/ 1 pts
Graphically show the likely impacts on the ADAS Model as aresult of the policy action.
view longer description
/ 4 pts
Explain what will happen as a result of the policy to the pricelevel, employment, and real GDP.
view longer description
/ 4 pts
Identify fiscal or monetary policy.
view longer description
/ 1 pts
Identify expansionary or contractionary policy.
view longer description
/ 1 pts
Graphically show the likely impacts on the ADAS Model as aresult of the policy action.
view longer description
/ 4 pts
Explain what will happen as a result of the policy to the pricelevel, employment, and real GDP.
view longer description
/ 4 pts
Identify fiscal or monetary policy.
view longer description
/ 1 pts
Identify expansionary or contractionary policy.
view longer description
/ 1 pts
Graphically show the likely impacts on the ADAS Model as aresult of the policy action.
view longer description
/ 4 pts
Explain what will happen as a result of the policy to the pricelevel, employment, and real GDP.
view longer description
/ 4 pts