Which policy is effective in the intermediate range?

Question

Quizplus · Accepted Answer

Both monetary and fiscal policies can be effective in the intermediate range. Monetary policy, managed by central banks, involves controlling the money supply and interest rates to influence economic activity. Fiscal policy, managed by the government, involves changes in government spending and taxation to influence the economy. Both can adjust demand, influence inflation, and impact employment levels in the intermediate term.

Which Policy Is Effective in the Intermediate Range