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For each of the following policies explain whether the policy is i) a monetary or a fiscal policy, ii) an active or a passive policy,
For each of the following policies explain whether the policy is i) a monetary or a fiscal policy, ii) an active or a passive policy, and iii) a policy by rules or with discretion: a. the central bank uses judgment to adjust the growth of the money supply based on expectations of what will happen to output and inflation over the next five years. b. a government follows a policy of keeping government spending over a calendar year equal to government revenue over the calendar year; C. the central bank follows a policy of allowing the money supply to grow at a constant 4 percent per year; d. the government keeps tax laws unchanging and allows government spending to change, depending on which spending bills are passed by the legislature. e. the central bank follows a policy of adjusting the money supply according to a formula based on deviations of unemployment from the natural rate of unemployment
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