Fiscal policy cannot deal with inflation on a long-term basis.

Name: Fiscal policy cannot deal with inflation on a long-term basis.
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Question

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Fiscal policy can only deal with inflation on a short-term basis by adjusting government spending and taxation policies to control demand. However, to address the root causes of inflation, other measures such as monetary policy, structural reforms, and supply-side policies are needed.

Fiscal Policy Cannot Deal with Inflation on a Long-Term Basis