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01 In the aftermath of the 2007-2009 recession, the U.S. national debt rose to record levels as the federal government used expansionary scal policy to

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01 In the aftermath of the 2007-2009 recession, the U.S. national debt rose to record levels as the federal government used expansionary scal policy to speed up the economic recovery. This led some politicians to propose a signicant reduction in the size of government in order to balance the budget. Would such a policy be expansionary or contractionary in nature? What factors would determine whether or not such a policy would harm economic growth

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