Urgent! ! ! ! ! ! Combined with IS-LM curve, the functions and limitations of fiscal policy and monetary policy are discussed respectively.

Well, there are many things here. It's too much trouble to type them out. I'll type them out briefly for you.

Monetary policy: the core is to adjust the money supply, so it mainly affects the LM curve. When expansionary monetary policy is adopted, LM curve moves to the lower right; When adopting contractive monetary policy, the results of shifting to the upper left, to the right and to the left are different:

Move to the right: increase in supply-move to the right, decrease in interest rate-increase in investment-increase in total demand-increase in total output-increase in total output, and decrease in interest rate leads to increase in money demand-rebalance.

Left shift: the opposite.

Fiscal policy: The core is to influence the economic operation through fiscal expenditure and tax adjustment, so it affects the IS curve, and the expansionary fiscal policy curve shifts to the right and the contractive fiscal policy curve shifts to the left, as follows:

Move to the right: the increase of expenditure-the curve moves to the right, the total demand increases-the total output increases-the money demand increases-the excess money demand makes the interest rate rise-the interest rate rise leads to the elimination of the excess money demand-is balanced again.

Left shift: the opposite.

Limitations: Monetary policy affects LM, and fiscal policy affects IS. The problem is that the IS-LM curve can't solve the problem. When it affects money supply, output and demand will change, while when it affects demand, money demand will change. Therefore, a single monetary policy and fiscal policy can hardly solve the problem. It is necessary to coordinate the use of the two policies to avoid the adverse effects of using one policy alone.