Business Finance
ECO372 University of Phoenix Active Monetary and Fiscal Policy Paper

ECO372

University of Phoenix

Question Description

Purpose of Assignment

This week requires the student to address six unresolved issues in macroeconomics, each of which is central to current political debates. Students are required to use information and tools that they have accumulated in their study of the text and evaluate both sides of those issues, determine which side they can support for each issue, and defend their positions.

Assignment Steps

Select two subjects from the following list of topics and write a 1,050-word analysis:

  • Active monetary and fiscal policy
  • Increased government spending to fight recessions
  • Reducing federal government's discretionary powers
  • Zero-inflation target
  • Balanced government budget
  • Tax incentives for saving

Evaluate both the advocates' position and the critics' position.

Determine which position you support and defend your position.

Cite a minimum of three peer-reviewed sources not including your textbook.

Format consistent with APA guidelines.

Final Answer

Attached.

Outline
Major debates Over Macroeconomic Policy
Covered;
I.
II.
III.

Active Monetary and Fiscal Policy
Tax Incentives for Saving
References


Running head: MAJOR DEBATES OVER MACROECONOMIC POLICY

Major debates Over Macroeconomic Policy
Student’s Name
Institutional Affiliation
Instructor
Date of Submission

1

MAJOR DEBATES OVER MACROECONOMIC POLICY

2

Active Monetary and Fiscal Policy
Active monetary and fiscal policies face support from individuals who are the advocates
in this case while at the same time some people are against it, and therefore, they are in the
critics' position category. Active and monetary policy is a topic on the stabilization of a nation's
economy where the government and all relevant stakeholders have the responsibility to stabilize
the economy (Bianchi & Ilut, 2017). When it comes to the active monetary and fiscal policies,
those who support it view it with the shake belief that the policy is capable of managing the
aggregate demand such that it can offset the policy instability (Leeper, 2017). Also, they believe
that if the policy is ignored, it can fluctuate accordingly. Those who support it are in a position to
make the aggregate demand stable which results in efficient production as well as employment.
However, active monetary and fiscal policies critics position is that they emphasize more
on the idea that the policy has astray influence on the economy as well as the capability to
indicate a poor economy in future. They argue that attempting the two to make the economy
stable wou...

paula9 (10824)
Carnegie Mellon University

Anonymous
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