Some Economists Argue That Policymakers Can Use Monetary and Fiscal

question 5

Essay

Some economists argue that policymakers can use monetary and fiscal policy to reduce the severity of economic fluctuations. What are some things policymakers can do when higher inflation becomes a concern?

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Definitions:

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without any prior learning or conditioning.

Stimulus

Anything that can trigger a physical or behavioral change.

Social-Cognitive Learning Theory

A theory that posits that people learn new behaviors and information by observing others, incorporating the concepts of observational learning, imitation, and modeling.

Observable Acts

Actions or behaviors that can be seen or measured directly.