2. What are governments fiscal policy options for moving the economy out of a recession? Speculate on
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2. What are government’s fiscal policy options for moving the economy out of a recession? Speculate on which of these fiscal options might be favored by
(a) a person who wants to preserve the size of government and
(b) a person who thinks the public sector is too large. How does the “ratchet effect”
affect anti-inflationary fiscal policy? LO1
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