ECON1132 Chapter : CH 9 Notes

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Fed er al res er ve banking syst e m: the c e n tr al b a nk of t h e us. Fisc al policy: ch a n g e s in t h e influencing the level and the composition of the circular flow of economic activity; includes changes in government spending on goods and services, changes in transfer payments and taxes. Mon e t ar y policy: ch a n g e s in t h e. Th e 3 p ar t e c o no mic pro ble m: objective s (four m a cro p olicy go als), alt er n a tive s. Macro m o d els all try to ex pl ain wh a t forc e s d e t er min e t h e level a n d t h e.

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