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Fiscal policy affects the economy by changing incentives. Taxing an activity tends to discourage that activity.

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Why are monetary policy lags generally shorter than fiscal policy lags?

Monetary policy lags are generally shorter than fiscal policy lags because central banks can implement changes quickly through mechanisms like interest rate adjustments or open market operations, which can be executed almost immediately. In contrast, fiscal policy involves a more complex legislative process, requiring proposals to be drafted, debated, and approved by various government bodies, which can take considerable time. Additionally, the impact of monetary policy tends to be more immediate, while fiscal measures often require time to be enacted and for their effects to materialize in the economy.


Which demand can become more elastic over time what changes can take place in the long term to affect demand?

Gasoline


Why do economists differ regarding their views on fiscal and monetary policy?

Economists differ in their views on fiscal and monetary policy due to varying theoretical frameworks, beliefs about market efficiency, and interpretations of historical data. Some emphasize the effectiveness of government intervention through fiscal policy to stimulate demand during economic downturns, while others prioritize monetary policy and the role of central banks in managing inflation and interest rates. Additionally, differing assumptions about how quickly and effectively policies take effect can lead to contrasting opinions on their appropriateness and effectiveness in different economic contexts. These ideological differences and empirical interpretations contribute to the diversity of thought in economic circles.


What is fiscal poilcy?

Fiscal Policy is the use of TAXES and GOVERNMENT SPENDING to manipulate the level of aggregate demand in the economyFiscal policy is the government's policy and plan for dealing with the budget for the year.Fiscal policy is the government's policy and plan for dealing with the budget for the year.


How long could trading take at a Middle Ages fair?

As long as the fair lasted.

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