There are pros and cons of using monetary and fiscal policy tools to stabilize the economy. A) Explain the main arguments in favor of economic...

There are pros and cons of using monetary and fiscal policy tools to stabilize the economy.

A) Explain the main arguments in favor of economic stabilization during recessions. Explain why policy lags could make stabilization policies counterproductive.

B) What are the justifications given in favor of more government involvement in the market economy? What are the reasons given in favor of less government involvement in the market economy?