a) Discuss monetary policy and fiscal policy by comparing and contrasting their effects in the short run and in the long run. b) Why do we say that monetary policy is neutral in the long run? If so, why is it being used and considered as useful? c) Can we say that fiscal policy is neutral as well?
a) Discuss monetary policy and fiscal policy by comparing and contrasting their effects in the short run and in the long run. b) Why do we say that monetary policy is neutral in the long run? If so, why is it being used and considered as useful? c) Can we say that fiscal policy is neutral as well?
Chapter18: Debates In Macroeconomics Over The Rolse And Effects Of Government
Section: Chapter Questions
Problem 7QP
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a) Discuss monetary policy and fiscal policy by comparing and contrasting their effects in the short run and in the long run.
b) Why do we say that monetary policy is neutral in the long run? If so, why is it being used and considered as useful?
c) Can we say that fiscal policy is neutral as well?
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