Provide arguments why should policymakers use fiscal and monetary instruments to control aggregate demand and stabilize the economy. If so, when? If not, why not?
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Provide arguments why should policymakers use fiscal and monetary instruments to control aggregate demand and stabilize the economy. If so, when? If not, why not?
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- If the market is in a recession (bust), what monetary and fiscal policies could the government use to heat it up?Which policy would be better or effective for stabilizing an economy, monetary or fiscal?Explain the importance of timing when it comes to fiscal and monetary policy. Which has the advantage in the short term? Which in the long term?
- If markets do not self-adjust, how can a decline in spending lead to a negative process that ruins an economy?Read the articles below and answer the following question: Economists are rethinking monetary and fiscal policy. That’s a potentially positive development. and RETHINKING MONETARY POLICY IN A CHANGING WORLD Why is it important to rethink fiscal and monetary policies? Justify your answers using the evidences provided in the article and relevant other resources.Do you think policy makers should attempt to stabilize the economy ? Why ?
- When is it appropriate to use monetary and fiscal policy to stimulate or stabilize the economy? please also include the reference for this question.Analyze and compare fiscal and monetary policy in order the generate macroeconomic stability.What happens when an economy was initially in full employment, following a strongly expansionary monetary or budgetary policy?