Stabilization policy is made up of both monetary and fiscal policy.

Question

Quizplus · Accepted Answer

Stabilization policy is a macroeconomic policy that aims to stabilize an economy by minimizing fluctuations in growth and employment. It consists of both monetary policy, which is controlled by a country's central bank and involves managing the supply and demand for money in the economy, and fiscal policy, which is controlled by the government and involves adjusting taxes and government spending. Therefore, the statement is true that stabilization policy is made up of both monetary and fiscal policy.

Stabilization Policy Is Made Up of Both Monetary and Fiscal