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[tags: Role of Central Bank] - During discretionary fiscal policy the government spends and taxes to change the economy during a particular problem.Both Congress and the president have to take action when they agree that the economy is in need.[tags: Economics] - Monetary and fiscal policy and their applications to the third world countries with a huge informal sector This essay seeks to explain what are monetary and fiscal policy and their roles and contribution to the economy.This includes the role of the government in regulating the economical performance of a country.Economic stabilisation is when the government and the central bank keep the economy growth stable, alongside unemployment and keeping price levels under control.The European central bank definition of economic stability "a condition in which the financial system – which comprises financial intermediaries, markets and market infrastructures – is capable of withstanding shocks and the unravelling of financial imbalances....

There was a shortage of skilled labourers in the market.

The most noticeable discretionary fiscal policy is the discretionary budget....

[tags: economy, discretionary budget, taxes] - John Fitzgerald Kennedy (JFK) ran for office against Richard Nixon during the recession of 1960. Contractionary Monetary Policy caused the recession of 1960, as the federal Reserve raised interest rates to curb a growth rate from 1959; with a shrinking economy and unemployment at its highest by the time of the election of 1960—P...

This description may be deemed as one-dimensional due to the fact that GDP is a measurement of the national economic performance based on a sole economic statistic.

By examining just one component of the economic activities, an assessment is determined based on the entire economy....

Policy as we have seen over the past five years has had dismal effect on the unemployment numbers we are seeing today.

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