Question

The influence of monetary and fiscal policy on aggregate demand

Answer 1

This value is often used as a measure of economic well-being or growth. Fiscal policy affects aggregate demand through changes in government spending and taxation. ... Monetary policy impacts the money supply in an economy, which influences interest rates and the inflation rate.

Answer 2

Explanation:

Fiscal policy affects aggregate demand through changes in government spending and taxation. Those factors influence employment and household income, which then impact consumer spending and investment. Monetary policy impacts the money supply in an economy, which influences interest rates and the inflation rate.