discussion post 1024

Respond to the following discussion post

Address the issue of Output-Price Adjustments

Money mechanics refers to a set of economic principle that helps to regulate the flow of money in an economy. Increased supply of money in an economy causes inflation. On the contrary, a reduced supply can hinder economic growth and development. For this reason, there exist several ways by which the supply of money can be regulated in the market. Federal Reserve enacted laws and regulations to watch over open market operations and restrict reserve requirements to enhance efficient supply. In addition, researchers and economists devised mechanisms to monitor the effects and supply of money in an economy. Analysis of macroeconomic policies and their impact on the society are an important aspects.