Economics q's.
the federal reserve uses monetary policy and congress uses fiscal policy to try to prevent “wild swings” in the economy and to alleviate some economic problems. what are the three goals both entities are trying to support? how do these three goals affect you?
when the economy is in a recession where is it in the business cycle? will the fed and congress take expansionary or contractionary actions to the economy? does this put money in the hands of people or take money away from them? what goals will the fed and congress support by doing this?
what economic problem would be solved by taking money out of circulation (away from people)? what could the fed do to contract the money supply? what is a contractionary action congress could take? why do these contractionary actions with this problem?