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AP US Government
Unit 4 – American Political Ideologies and Beliefs
Topic 4.9
What distinct approach does Fiscal policy take in comparison to Monetary policy during a recession?
Both policies use taxation as their primary tool to manage recessions.
Fiscal policy focuses on controlling the money supply whereas Monetary policy uses government spending and tax measures.
Both policies rely primarily on controlling inflation during periods of economic downturn.
Fiscal policy uses government spending and taxation to stimulate the economy, while Monetary policy controls the money supply and interest rates.
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AP US Government - 4.9 Ideology and Economic Policy
Key terms
Fiscal Policy
Monetary Policy
Recession
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Cram Mode
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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