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(b) A balanced budget policy is pro-cyclical, explain with economic reasoning and appropriate diagram. (c) What are the potential problems with the cyclically balanced budget

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(b) A balanced budget policy is pro-cyclical", explain with economic reasoning and appropriate diagram. (c) What are the potential problems with the cyclically balanced budget fiscal policy? A fiscal policy of changing both the government spending and tax by the same amount is not neutral, explain with a numerical example

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