Some economists argue that
A)monetary policy should actively be used to stabilize the economy.
B)fiscal policy should actively be used to stabilize the economy.
C)fiscal policy can be used to shift the AD curve.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All three statements are correct. Some economists argue that monetary policy should be used to stabilize the economy by adjusting interest rates and money supply. Others argue that fiscal policy should be used through government spending and tax policies. Additionally, fiscal policy can be used to shift the aggregate demand curve through changes in government spending or taxes.

Some Economists Argue That