Which of the following statements about the debate over stabilization policy are correct? Check all that apply.   A)Opponents of active stabilization policy believe that significant time lags in both fiscal and monetary policy often exacerbate economic fluctuations.   B)Opponents of active stabilization believe that active fiscal and monetary policies have no effect on aggregate demand.   C)Advocates of active stabilization believe that automatic stabilizers have no effect on aggregate demand.   D)Advocates of active stabilization believe that implementation lags for fiscal and monetary policy do not exist.

Like any economic crisis, unemployment rises, aggregate income falls, and tax collections drop during the Great Recession. While unemployment rises, safety net spending rises. To stabilize the economy, the government appears to have just two options: harsh austerity (reduce spending) or more borrowing. It is difficult to defend cuts in federal government programs, especially those that provide a minimum standard of living for the poor, but increasing indebtedness hurts the economy. In a few words, analyze Costs of eliminating the budget deficit solely through (1) personal tax increases, and/or (2) through spending cut by decreasing in transfer payments (i.e., Social Security, Medicare and Medicaid) and in discretionary spending (such as defense and education budgets)

Given all the complications that can result with fiscal policy, is fiscal policy still considered an effective policy tool for stabilizing business cycle fluctuations? - While some economists believe it is best not to engage in fiscal policy at all and instead focus on monetary policy, most economists believe that fiscal policy has a place in stabilization policy. Currently, most economists believe that ( fiscal, monetary ) policy is useful to 'push' the economy in a certain direction, but not necessarily 'fine-tune it' to a particular outcome. They argue that if ( fiscal, monetary ) policy is keeping the economy relatively stable, ( fiscal, monetary ) policy should remain fairly neutral. In cases where recessions are deep and long-lasting or inflation threatens to rapidly rise, major adjustments in ( fiscal, monetary ) policy may be helpful to stabilize the economy. Economists do warn that the long-term effects of short-term applications of fiscal policy should be considered to ensure…

In an attempt to promote renewable energy, the government provides an annual rebate to those who install solar panels on their roofs. What type of economic policy would this represent? a) Fiscal policy b) Monetary policy c) Both fiscal policy and monetary policy d) Neither fiscal nor monetary policy   Asap.

Explain what kind of fiscal policy and what kind of monetary policy are likely to reduce GDP.

Some reject stimulus measures and all current policy forms. These economists Focus on the damaging activities and decisions of a private corporations, commercial banks, wealthy individuals. How can these groups delete our private market system, each in their own way, frustrate and foil the goals of a combined fiscal and monetary stimulus program?

Explain the interaction of monetary policy and fiscal policy at full employment

This is a true statement about monetary and fiscal policy: The Medicare program is fiscal policy and the fed funds rate is monetary policy. Both are run by the Federal Reserve. Unemployment insurance is fiscal policy and defense spending is monetary policy. Monetary policy targets income inequality while fiscal policy targets inflation.   This is an example of the government sponsoring “uneconomic” economic activity:     The National Park Service       Corporate income taxes       Banking regulation     Making trade agreements with other countries

Q1. In this module we learned about severalreal-world complications that make monetary and fiscal policy more challenging than simple theory would suggest. Given the state of the Canadian economy and the causes of that state-think back to earlier discussions about the current economy-what should be the appropriate mix of fiscal and monetary policy, from a Keynesian perspective? From a neoclassical perspective? Which makes the most sense to you? Provide evidence (include and least one link/citation) to provide support to your conclusion.

Start with a brief introduction that explains use of Government policy to control the economy. When is it appropriate to use monetary and fiscal policy to stimulate or stabilize the economy? Look at both. When is it inappropriate to use monetary and fiscal policy to stimulate or stabilize the economy? Look at both. What specific fiscal policy tools would you use to stimulate aggregate demand and how? What specific monetary policy tools would you use to stimulate aggregate demand and how? What is your conclusion, should policymakers use the monetary and or fiscal policy, or a combination of both, to stimulate aggregate demand? Explain your reasoning.