1)Which country's economic policy would the Austrian School approve of the most?

2)Why has the monetary policy been formed separately from fiscal policy since the 1970s?

3)What best describes Canada's economic policy?

1)Chile's economic policy would the Austrian School approve of the most that mean Chile has good grades and in the history of Chile, it has no distant past and it is improving its economic performance as modern Chile resound with a marked in a free market. In this way, Chile would be the top-ranked on the list.

2)Monetary policy and fiscal policy are different from each other. Fiscal policy includes government spendings, tax rates and borrowings. Whereas, monetary policies uses many methods to control the supply of money and to influence inflation rate, unemployment level, economic growth and exchange rates. Since, 1970s monetary policy has generally formed separately from fiscal policy. The countries must form monetary and fiscal policies separately. This separation arises because of the way government get extra monetary base into private sector hands. Monetary policies are carried by central bank of the country and fiscal policies are carried by government of the country.

3)The government has the objective to maintain the economic growth and to prevent unemployment such that it increases its expenditure or reduce taxes in such a manner that the debt continues to grow in an economy. It results in a deficit in an economy. As the government increases its expenditure then the IS curve shifts rightward that increases the rate of interest in such a way that the aggregate demand curve shifts rightward such that both price level and output increase in an economy. It results in economic growth and also reduce unemployment in an economy.