Monetary policy is the first economy-wide policy examined in this class. Module 2 discusses monetary policy goals, targets to measure those goals, and tools to achieve those goals. The effect of monetary policy on the aggregate economy is examined using the Aggregate Demand and Supply Model.
Explain the goals, targets, and tools of monetary policy.
Explain how the Fed enacts monetary policy.
Show how contractionary and expansionary monetary policy affect the economy using the Aggregate Demand and Supply Model.