D B A Essays. Both use advertising to differentiate their products from those of other sellers. In monopolistic competition there are many sellers, and entry into the market is easy. In an oligopoly there are few sellers, and entry into the market is very difficult. Both monetary and fiscal policy are used to stabilize the economy.
Fiscal policy is a change made by the government in spending or taxation.
Either one of these policies might be enacted when it appears that the economy needs stimulation in some way. Slow growth, high unemployment, and rapid inflation are the most common reasons that the government might seek to influence the economy through monetary or fiscal policy.