Some economists believe that sound fiscal and monetary policy can reduce the amount of time the economy is in the ____ stage of the business cycle.

Question

Quizplus · Accepted Answer

Sound fiscal and monetary policy can help to prevent the economy from going into a recession or lead to a shorter duration of the recession. This is because fiscal policy involves government spending and taxation, which can help increase aggregate demand and stimulate economic growth. Meanwhile, monetary policy involves controlling the money supply and interest rates, which can influence consumer and business spending. Both of these policies can help to stabilize the economy and prevent it from experiencing prolonged periods of recession.

Some Economists Believe That Sound Fiscal and Monetary Policy Can