List four of the six main debates over macroeconomic policy and comment on both the pros and cons of the two which you find the most compelling

There are six significant debates over the microeconomic policy, and four of these include; should the government work on balancing its budget? Should the central bank focus at flattening inflation? Should monetary policy be made by rule or discretion? Should the government fight recessions with spending hikes or tax hikes? And lastly, should the policymakers try to stabilize the economy?

Arguments that I find compelling are those of if policymakers should stabilize the economy and if the central bank should focus at flattening inflation. The pros of policymakers trying to make the economy stable are that a stable economy will benefit everyone as the employment levels will increase, and aggregate demand and output stabilize. Contrary to this, policies work with long lags, and because of this, fluctuations may worsen since they are unpredictable.

On the other hand, the pros of central banks having zero inflation are that consumers will enjoy lower prices for products and disposable income. In contrast, temporary costs may be incurred, such as a higher unemployment rate, investment decline, and lowered future capital stock.