Some Economists Argue That Policymakers Can Use Monetary and Fiscal

question 22

Essay

Some economists argue that policymakers can use monetary and fiscal policy to reduce the severity of economic fluctuations. In practice, however, there are obstacles to the use of such policies. What are the primary difficulties with using monetary and fiscal policy to stabilize the economy?

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Definitions:

Internal Nares

The internal openings of the nasal cavity into the pharynx, through which air passes during respiration after being filtered, moistened, and warmed.

Choanae

The internal openings of the nostrils in the pharynx; posterior nasal apertures.

Epiglottis

A leaf-shaped flap in the throat that prevents food and drink from entering the windpipe during swallowing.

Parietal Pleura

The part of the pleura that lines the inner surface of the chest wall and diaphragm, but does not cover the lungs.