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Don't understand information on website. Figured out other three pages please help 7-5 Go to the Web site http:/www.whitenova.com/thinkEconomics/policy.html. Read the information regarding Economic Policy

Don't understand information on website. Figured out other three pages please help

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7-5 Go to the Web site http:/www.whitenova.com/thinkEconomics/policy.html. Read the information regarding Economic Policy Tools. At the bottom of the page is an interactive graph which shows how 1) fiscal and 2) monetary policies affect the economy given Full Employment, an Expansionary Gap (inflationary gap), or a Contractionary Gap (recessionary gap). Start by selecting Full Employment. Then, select each of the Policy Instruments under Fiscal and Monetary Policy. Move the curves on the graph to show the selected fiscal or monetary policy. Do this for Expansionary Gap and Contractionary Gap. Be sure to read the feedback concerning what happens to the economy after you move a curve. Spend some time with the interactive graphs until you understand how the economy will react to all the policy instruments given full employment, expansionary gap, or contractionary gap. a. Image you are a member of the U.S. Congress, and it is your job to address a contractionary gap. Graph a contractionary gap. Explain what policy tools you could use to close the gap. Show how the gap will close on a graph. (10 pts.) b. Image you are a member of the Open Market Committee at the Federal Reserve, and it is your job to address an expansionary gap. Explain what policy tools you could use to close the gap. Show how the gap will close on a graph(s). Be sure to graph the Money Market as well as aggregate demand and supply of real GDP. (10 pts.)

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