Some European countries such as Ireland have difficulty closing recessionary gaps with expansionary macroeconomic policies because

Question

Quizplus · Accepted Answer

European countries such as Ireland have difficulty using expansionary macroeconomic policies to close recessionary gaps because their monetary policy is set by the European Central Bank, limiting their ability to control interest rates and stimulate economic growth through monetary policy.

Some European Countries Such as Ireland Have Difficulty Closing Recessionary