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Assume that an economy is currently in a recession (this is what is happening currently - see article here). What fiscal policies can the government
Assume that an economy is currently in a recession (this is what is happening currently - see article here). What fiscal policies can the government use to aid in the economy's recovery? Make sure that you indicate a) increase government spending and decrease in taxes as two major policies 2) how these policies will aid the recovery. What are some of the problems associated with using fiscal policies to recover from a recession? What are some of the benefits? Are there limits to the extent to which fiscal policy can be used?
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