Economists agree that:
A)fiscal policy can be used to shift the aggregate-demand curve
B)monetary policy should actively be used to stabilise the economy
C)fiscal policy should actively be used to stabilise the economy
D)all of the above

Question

Quizplus · Accepted Answer

While some economists may argue for the active use of monetary or fiscal policy to stabilize the economy, there is broader consensus that fiscal policy can be used to shift the aggregate-demand curve. This involves using government spending and taxation to directly influence consumer and business spending, and can be effective in boosting economic growth during a recession or slowing down an overheating economy. Monetary policy, on the other hand, involves regulating the money supply, interest rates, and credit availability through the actions of a central bank, and may be less effective in certain situations.

Economists Agree That