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What would be the appropriate fiscal policy to help our economy? Please evaluate how our economy is doing and why you selected your respective fiscal policy action. What are some of the challenges of using fiscal policy to stabilize our economy?

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Kritika Krishnakumar
Kritika KrishnakumarLv10
28 Sep 2019

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Related questions

Analyze what policy is more effective at solving a recession, fiscal or monetary policy and why. Evaluate the most appropriate fiscal policy for our economy right now using data that is relevant to making this decision.

As you have learned in Unit 8 (this week), monetary and fiscal policy play important roles in economic stimulation and or stabilization. In this regard:

 

a. When is it appropriate to use monetary and fiscal policy to stimulate or stabilize the economy? 

b. When is it inappropriate to use monetary and fiscal policy to stimulate or stabilize the economy?

c. What specific fiscal policy tools would you use to stimulate aggregate demand and how?

d. What specific monetary policy tools would you use to stimulate aggregate demand and how?

e. What is your conclusion, should policymakers use the monetary and or fiscal policy to stimulate aggregate demand? Explain briefly.

If the economy is experiencing a recession, what would be more effective for stabilizing our economy, the use of monetary and/or fiscal policy? Please make sure to explain your analysis.

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