Discussion questions are below. 150 words minimum with references.
There are pros and cons of using monetary and fiscal policy tools to stabilize the economy.
- Explain the main arguments in favor of economic stabilization during recessions. Explain why policy lags could make stabilization policies counterproductive.
- What are the justifications given in favor of more government involvement in the market economy? What are the reasons given in favor of less government involvement in the market economy?