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Explain how monetary and fiscal policies can be used to alleviate (= lessen) dissimilar types of inflation.
Define monetary and fiscal policies and show how these policies might reduce inflation rates caused by demand-pull, cost-push and excess money supply. Problems such as reduces AD during cost-push inflation should be brought up, and the SR and LR issues of these policies execution and effect should be given some consideration.
Problem: i) What might be the possible causes of inflation according to economic theory? ii) Taking stable prices and full employment as two macroeconomic objectives of gov
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