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  3. ZuAI AP College Board Macroeconomics
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Question BankQuestion Bank

Fiscal and Monetary Policy Actions in the Short-Run

Ava Garcia

Ava Garcia

3 min read

Study Guide Overview

This guide covers fiscal and monetary policy, focusing on how they influence Aggregate Demand (AD). It details how the government uses fiscal policy (taxes and spending) and the Federal Reserve uses monetary policy (interest rates, money supply) to stabilize the economy, including addressing recessionary gaps. Graphing AD shifts is emphasized.

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Question 1 of 5

Feeling confident? 😎 Which entity is in charge of Fiscal Policy?

The Federal Reserve (The Fed)

Congress & the President

The Treasury Department

State Governors