Fiscal policy is unnecessary since aggregate demand is always compatible with economic stability.

Name: Fiscal policy is unnecessary since aggregate demand is always compatible with economic stability.
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Question

Quizplus · Accepted Answer

Fiscal policy is necessary to stabilize the economy, especially during periods of recession or inflation. Aggregate demand can fluctuate and may not always be compatible with economic stability, requiring government intervention through fiscal policy measures such as taxes and spending policies.

Fiscal Policy Is Unnecessary Since Aggregate Demand Is Always Compatible