One question concerns stabilization policy -- keeping the economy as close as possibl in economics, as in other disciplines, the important questions change over time in macroeconomics, there are two big questions and our attention to one or the other changes with the economic events of each era.
Traditionallyf stabilization policy maintains a constant budget balance in the long-run and whether to use tax changes or spending changes is a matter of effectiveness, not a matter of ideology about the size of government. A stabilization policy is a package or set of measures introduced to stabilize a financial system or economy the term can refer to policies in two distinct sets of circumstances: business cycle stabilization and economic crisis stabilization.
Monetary policy aimed at reducing fluctuations in inflation and unemployment levels, while simultaneously maximizing national income such policies (out of favor in the era of globalization) attempt to expand demand when unemployment is high, and to curtail demand when inflation accelerates.
1 chapter 35 the short-run trade-off 0 using policy to stabilize the economy since the employment act of 1946, economic stabilization has been a goal of us policy economists debate how active a role the govt should take to stabilize the economy chapter 35 the short-run trade-off 1 the case for active stabilization policy. Stabilization policy the control of the level of aggregate demand in an economy, using fiscal policy and monetary policy to moderate or eliminate fluctuations in the level of economic activity associated with the business cycle.
In an effort to relieve pressure on la county renters, the board of supervisors voted 4 to 1 in favor of a measure that would limit rent increases to 3% annually.
A stabilization policy is a macroeconomic strategy enacted by governments and central banks to keep economic growth stable, along with price levels and unemployment ongoing stabilization policy includes monitoring the business cycle and adjusting benchmark interest rates to control aggregate demand in the economy.