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1) What are the two fiscal policy tools that governments can use? 2) Using the IS-LM model, explain why the aggregate demand curve slopes downward.

1) What are the two fiscal policy tools that governments can use?

2) Using the IS-LM model, explain why the aggregate demand curve slopes downward.

3) What are the benefits of using fiscal policy?

4) Use the AD-AS model to graphically depict the benefits of using fiscal policy.

5) What are the problems with using fiscal policy?

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