Discussion Post: Stabilizing the Economy
As you have learned, monetary and fiscal policy play important roles in economic stimulation and or stabilization. In this regard:
• When is it appropriate to use monetary and fiscal policy to stimulate or stabilize the economy?
• When is it inappropriate to use monetary and fiscal policy to stimulate or stabilize the economy?
• What specific fiscal policy tools would you use to stimulate aggregate demand and how?
• What specific monetary policy tools would you use to stimulate aggregate demand and how?
• What is your conclusion, should policymakers use the monetary and or fiscal policy to stimulate aggregate demand? Explain briefly.
The response should include a reference list. Using one-inch margins, Times New Roman 12 pnt font, double-space and APA style of writing and citations.