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Both fiscal and monetary policy can affect real GDP, due to time-lag in wage and price adjustments. In general, however, fiscal policy has a much more direct effect on real GDP.
on A+: because of its effect on interest rates :))
because of its effect on interest rates.
on A+: because of its effect on interest rates :))
on A+: because of its effect on interest rates :))
on A+: because of its effect on interest rates :))
because of its effect on interest rates.
on A+: because of its effect on interest rates :))
The fiscal policy focuses on how government intervention will shift the demand depending on which issue is the most pressing. The supply policy is used when more employment is needed.
Because there are more political complications with determining and implementing fiscal policy.
By devaluation of currency exports of a country can be increased because when we devalue currency our products become cheaper for foreigners and they purchase more of them. A loose fiscal and monetary policy will help in increasing the exports of a country.
Opinions about if fiscal policy or monetary policy is better will vary depending on who you ask. One country may benefit greatly with fiscal policy, while another may not. It all has to do with their economic system.