Question
Assume that an economy is currently in an expansion. a. What fiscal policies can the government use to control the economy's expansion? Make sure that
Assume that an economy is currently in an expansion. a. What fiscal policies can the government use to control the economy's expansion? Make sure that you indicate a) the two major policies that the government can use and b) how (specifically) these policies will aid with the expansion. b. Are there problems associated with using fiscal policies to recover from an expansion? Are these "problems" different for an economy that is trying to recover from a recession? c. Instead of using fiscal policy, can monetary policy be used? If so, what kind of monetary policy?
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