a) Discuss monetary policy and fiscal policy by comparing and contrasting their effacts in the short run and in the long run. b) Why do we say that monetary policy is neutral in the lang run? if so, why is it being used and considered as useful? c) Can we say that fiscal policy is neutral as well?

a) Discuss monetary policy and fiscal policy by comparing and contrasting their effacts in the short run and in the long run. b) Why do we say that monetary policy is neutral in the lang run? if so, why is it being used and considered as useful? c) Can we say that fiscal policy is neutral as well?

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter17: The Trade-off Between Inflation And Unemploy

Section: Chapter Questions

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Question

a) Discuss monetary policy and fiscal policy by comparing and contrasting their effects in the short run and
in the long run.
b) Why do we say that monetary policy is neutral in the long run? If so, why is it being used and considered
as useful?
c) Can we say that fiscal policy is neutral as well?

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