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Mechanical aspects of conducting fiscal and monetary policy

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Mechanical Aspects of Conducting Fiscal and Monetary Policy

Briefly explain the tools that governments have to move the economy from either a recessionary or expansionary gap to the long run equilibrium level. what are some of the fiscal or monetary policy tools available to government and the Bank of Canada can undertake to get the economy back to full employment.Please use diagrams to illustrate your answer.What are the pros and cons of fiscal and monetary policy?

Based on your analysis, does conducting fiscal and monetary policy result in the same impacts on inflation or output levels?Be sure to talk about the tradeoffs (or lack thereof) that exists between inflation and output in the short and long run.

Reference no: EM1392397

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