Question: Explain monetary policy, its role, and its effects on short- and long-term economic fluctuations. Use the aggregate demand and supply model. Explain each of the

  1. Explain monetary policy, its role, and its effects on short- and long-term economic fluctuations. Use the aggregate demand and supply model.
  2. Explain each of the tools that exist in expansionary monetary policy and contractionary monetary policy.
  3. Explain the effects of expansionary and contractionary monetary policy on income and the price level.
  4. Using the premise presented as a basis, he argues about the intervention of monetary policy as instruments to promote growth, sustainability and economic stability in a country. (Offers an example).

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