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suppose that the central bank of a given country is not independent, and the elected government has complete control over monetary policy. in the accompanying diagram, assume that the economy starts off at the macroeconomic equilibrium. a. an election is coming up and the majority political party wants to increase its chances of retaining majority control of congress. policy makers decide the best way to ensure reelection is to force the central bank to enact expansionary monetary policy. in the accompanying graph, shift the curve(s) to depict the impact this will have on the macroeconomy.

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Monetary and fiscal policy make comprise a nation's macroeconomic strategy.

What effect will this have on the macroeconomic environment?

With the aid of these two strategies, a nation can manage practically all of its infrastructure growth, development, and financial sector improvement.

The nation's expansionary monetary policy lowers market interest rates while expanding the money supply. It reduces interest rates and increases the money supply.

What is microeconomic planning?

The plan consists of three parts: investing on sound economic principles. boosting access to services in four input sectors and increasing their effectiveness. expanding the potential for employment, growth, and equity in a few selected key areas.

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