Question

The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement to whether the government should attempt to stabilize the

Answer 1

The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement to whether the government should attempt to stabilize the economy.

Answer 2

Answer:

A. No one EVER wants to stabilize the economy. Stability means lack of change. Everyone wants change - usually continual economic growth. Occasionally it means reducing the rate of inflaton.

If you are using "stability" as a euphemism for certain other states: a constant rate of growth, a constant level of unemployment and/or inflation while growth continues, etc., then you'll have to be more direct in your language.

B. It sounds like you want us to do your homework for you. That's not what I'm here for. I'm interested in helping you learn economics; whether you get a good grade is something I don;t care about at all.

C. Everyone agrees that the government has the ability to _affect_ the level of output. Not everyone agrees that the government has the ability to _influence_ the level in the sense of moving the output in a definite direction.