The statement that there is a debate over whether the government to attempt to stabilize the economy, given its monetary and fiscal policy tools, is True.
The government can either use monetary policy, or fiscal policy. Fiscal policy is the use of public expenditure and taxation to affect the economy, particularly macroeconomic conditions. These include employment, inflation, economic expansion, and the total demand for goods and services.
A country's central bank uses a set of instruments called monetary policy to regulate the total amount of money in circulation, foster economic expansion, and implement measures like adjusting interest rates and altering bank reserve requirements.
The government is therefore able to stabilize the economy but some economists debate that the government should not do so and should instead allow the economy to recover and stablize on its own.
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