792PART THIRTEENFINAL THOUGHTSon the economy. This final chapter presents both sides in five leading debates overmacroeconomic policy. The knowledge you have accumulated in this course pro-vides the background with which we can discuss these important, unsettled is-sues. It should help you choose a side in these debates or, at least, help you seewhy choosing a side is so difficult.SHOULD MONETARY AND FISCAL POLICYMAKERSTRY TO STABILIZE THE ECONOMY?In Chapters 31, 32, and 33, we saw how changes in aggregate demand and aggre-gate supply can lead to short-run fluctuations in production and employment. Wealso saw how monetary and fiscal policy can shift aggregate demand and, thereby,influence these fluctuations. But even if policymakers caninfluence short-run eco-nomic fluctuations, does that mean they should?Our first debate concerns whethermonetary and fiscal policymakers should use the tools at their disposal in an at-tempt to smooth the ups and downs of the business cycle.
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