Some economists argue that the government should avoid active use of monetary and fiscal policy to...

Some economists argue that the government should avoid active use of monetary and fiscal policy to try to stabilize the economy. What are the key points of each side of the issue? Explain what opinion you support and why.

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Rahul Sunny answered 2 years ago

Should the government use monetary and fiscal policy in an effort to stabilize the economy?

27. Use of discretionary policy to stabilize the economy Should the government use monetary and fiscal policy in an effort to stabilize the economy? The following questions address the issue of how monetary and fiscal policies affect the economy and the pros and cons of using these tools to combat economic fluctuations. The following graph shows a hypothetical aggregate demand curve (AD), short-run aggregate supply curve (AS), and long-run aggregate supply curve (LRAS) for the U.S. economy in March 2020.Suppose the government...

Should the government use monetary and fiscal policy in an effort to stabilize the economy?

Should the government use monetary and fiscal policy in an effort to stabilize the economy? The following questions address the issue of how monetary and fiscal policies affect the economy, and the pros and cons of using these tools to combat economic fluctuations.The following graph shows a hypothetical aggregate-demand (AD) curve, short-run aggregate-supply (AS) curve, and long-run aggregate-supply (LRAS) curve for the Canadian economy in March 2023.Suppose the government decides to intervene to bring the economy back to the natural...

Some economists argue that the government intervention makes the economic outcome even worse. Some argue that...

Some economists argue that the government intervention makes the economic outcome even worse. Some argue that there are important economic roles of the government. What is your opinion? Does the government do good or bad? Briefly discuss.

Monetary authorities should tend to carry out active monetary policy in any policy making. This is...

Monetary authorities should tend to carry out active monetary policy in any policy making. This is because active monetary policy will quickly respond to economic conditions, both global and domestic, to control the stability of the domestic economy. In addition, taking a long time of monetary policy will have an impact on the economic crisis because there is no policy that can immediately handle changes in economic conditions. Discuss this!

what kind of fiscal and monetary policy should government authorities implement? Explain why and give specific...

what kind of fiscal and monetary policy should government authorities implement? Explain why and give specific examples of each policy that might be implemented. What effect would these policies have on aggregate demand (AD)? Country facing a lost decade of growth, ANZ warns By Shane Wright (Sydney Morning Herald, 21 January 2020) Australia is facing a lost decade of economic growth, ANZ has warned, that will see living standards slip and wages grow modestly while putting pressure on the Morrison...

Some politicians and economists argue that tax cuts are beneficial for the government budget balance and...

Some politicians and economists argue that tax cuts are beneficial for the government budget balance and are also beneficial for the economy in the short run and the long run. Explain their arguments and evaluate them briefly.

Some economists, such as Paul Krugman, argue for government to take a more Keynesian approach to...

Some economists, such as Paul Krugman, argue for government to take a more Keynesian approach to promoting economic growth—that government borrowing can be economically healthy, in developing infrastructure for future needs or to spend its way out of a recession. More conservative economists argue that a country’s economic growth over the long term is better obtained through a tighter monetary policy and a more aggressive approach to balancing the budget. Which is more important for a healthy economy, a balanced...

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Some economists argue that the government should avoid active use of monetary and fiscal policy to...

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Should the government use monetary and fiscal policy in an effort to stabilize the economy?

Should the government use monetary and fiscal policy in an effort to stabilize the economy?

Some economists argue that the government intervention makes the economic outcome even worse. Some argue that...

Monetary authorities should tend to carry out active monetary policy in any policy making. This is...

what kind of fiscal and monetary policy should government authorities implement? Explain why and give specific...

Some politicians and economists argue that tax cuts are beneficial for the government budget balance and...

Some economists, such as Paul Krugman, argue for government to take a more Keynesian approach to...

Explain Fiscal policy and Monetary policy

what is monetary policy and fiscal policy?

Define fiscal policy and then define monetary policy. Explain how the government uses each policy when...