1. Achieving internal and external balances
In practice though there are no examples of full employment under the capitalist economic system, or any other for that matter. ... To evaluate this, we must look at fiscal policy and the obstacles encountered in policy planning. ... Firstly, they could use expansionary fiscal policy to attain external balance or secondly, they could use contractionary fiscal policy to achieve internal balance. ... This includes both fiscal and monetary policy (fiscal policy referring to changes in government expenditures and taxes), and monetary policy (changes in a nation's money supply, in turn affect...
- Word Count: 1548
- Approx Pages: 6
- Grade Level: Undergraduate