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:

Drug Tolerance

The reduced effectiveness of a drug as a result of the repeated use of the drug.

Supporting Evidence

Information, data, or facts that underpin and reinforce a theory, hypothesis, or belief.

Unconditioned Stimuli

In classical conditioning, stimuli that naturally and automatically trigger a response without prior learning.

Overdoses

Excessive and dangerous doses of substances, leading to toxic reactions and sometimes death; commonly associated with drugs and medication.