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What are the important elements of stabilization policies

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Reference no: EM132405706

Macroeconomics grew out of attempts to explain recurrent fluctuations in economic activity, that is, business cycle theories. The length of adjustment time and the economic impact of that adjustment is the subject of much debate among economists. Economists have proposed many policies to reduce the fluctuations in real gross domestic product due to the business cycle. Consider whether stabilization policies have reduced the severity of business cycles.

Answer the following questions:

  • What are the important elements of stabilization policies?
  • Have the stabilization policies been effective?

Reference no: EM132405706

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