Question: Discuss whether or not the Fed should use its policy tools to smooth out the business cycle (reducing output during economic expansion and increasing output

Discuss whether or not the Fed should use its policy tools to smooth out the business cycle (reducing output during economic expansion and increasing output during recessions). Explain your rationale

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Modern economic thought is characterized by the use of both fiscal and monetary policies to counteract and smooth out the business cycle As the table shows economists have had success in using these p... View full answer

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