b. How do fiscal and monetary policies differ in their approaches to managing the economy during periods of recession? Provide examples of each policy tool.
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b. How do fiscal and
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- Assume the economy has entered a recession. Identify two fiscal and two monetary policy actions that could be used to alleviate the recession and explain how each policy would improve the economy.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?When is it appropriate to use monetary and fiscal policy to stimulate or stabilize the economy? please also include the reference for this question.
- 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?How does high inflation lead to a recession in the country? Explain the role ofthe Government and the Central Bank to address the economic recessionproblem by using appropriate fiscal and monetary policies.In detail explain the role of the Government and the Central Bank to address the economic recessionproblem by using appropriate fiscal and monetary policies.
- Monetary and fiscal policy play important roles in economic stimulation and or stabilization in what way and explain,Analyze and compare fiscal and monetary policy in order the generate macroeconomic stability. Which kind of economic measures do you recommend atthe current economic situation which is characterized as a stagflation situation?How does high inflation lead to a recession in the country? Explain the role of the government and the central bank to address the economic recession problem by using appropriate fiscal and monetary policies. Are there any potential problems with such policies?
- Analyze and compare fiscal and monetary policy in order the generate macroeconomic stability. Which kind of economic measures do you recommend atthe current economic situation which is characterized as a stagflation situation? (use graphs)What were the monetary and fiscal policy responses to the Great Recession? Discuss their effectiveness and how the policy contributed to GDP growth.is monetary policies in dealing with the consequences of recession is better than the use of fiscal policies?