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What is mean by stabilization policy?
Taming the Business Cycle:
To decrease the severity of recessions policy efforts undertaken are termed as stabilization policy.
a. One form of stabilization policy is monetary policy, changes within the quantity of money or the interest rate.
b. The second form of stabilization policy is fiscal policy, changes within tax government or policy spending, or both.
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Question 1: "Policy can be conducted by rules or discretion.. The increased role of expectations led to some economists arguing that it would be best to force monetary policy
function of economics
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