1. Compare and contrast monetary and fiscal policy in the context of an economy

1.
Compare and contrast monetary and fiscal policy in the
context of an economy experiencing a recessionary
gap. What are the policy options of each and how does each policy work?
What are the advantages and disadvantages of using either monetary or fiscal
policy? After your general discussion recommend a specific detailed policy
for addressing the current recessionary gap. Use an AD-AS diagram (draw and
scan or create on your computer) to show the short run and long run effects of
using the policy you chose.2.
Choose one (1)
of the following and discuss. Indicate
your choice clearly in your answer:a)
Debt reduction vs. stimulus for economic recovery
during a recession: What are your recommendations to the current administration
considering the state of the economy and the level of national debt? What are
the implications of your recommended course of action? Use an AD-AS model (draw
and scan or create on your computer) to illustrate the effects of such a policy
during a recession. Cite readings and/or presentations to support your
comments.b)
Keynes vs. Hayek: What are their perspectives on the
role of government in the economy? Whose theories do you think are more useful
in the current economic situation? What implications does the theory you chose
have for individuals communities and the aggregate economy? Cite readings
and/or presentations to support your comments.