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The Phillips curve actually does not technically exist, although a modified, expectations Phillips curve does hold empirically. Moreover, the curve demonstrates a trade-off between unemployment and inflation. Essentially, the premise is that fiscal policy cannot solve inflation and unemployment. However, the curve does not hold after the 1960s, and many case studies show fiscal policy can solve both issues to a degree, or at least increase both at the same time.

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“Coordinating fiscal policy,” one of the five limits of fiscal policy, can be difficult because _____.?

state and local government policies might interfere with the intended outcome of federal policies


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fiscal policy OBJ. in relation to taxation policy and expenditure policy


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the need for discretionary spending


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Fiscal policy is a policy centered on ideas and research.


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Yes these are same................


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They could conflict because of differing ideas on what will resolve stagflation. The fiscal policy may be spending money to meet the programs for the government. The monetary policy may be trying to decrease business involved in the fiscal policy. Actions meant to lower inflation may worsen the stagflation. It is sometimes difficult to reverse stagflation once it has begun.


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fiscal policy


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