Fiscal policies as instruments to promote economic growth

Read the following premise carefully and answer the questions specifically and in detail. Keep in mind that, to obtain the total value that corresponds to each question, you must answer the request with the correct information, demonstrating that you understand and can properly apply the concepts studied. Try to address all elements of each question and always put the answers in your words.

In the face of unstable economic growth due to a recession or accelerating inflation, the potential problems of high public debt include increased income inequality, reduced economic incentives, and crowding out private investment.

1.Explains in detail fiscal policy, its role and its effects on short- and long-term economic fluctuations (uses the model of aggregate demand and supply presented in the course).

2.Explains each of the tools that exist in expansionary fiscal policy and contractionary fiscal policy.

3. Expresses in detail the effects of expansionary and contractionary fiscal policy on income and price levels.

4.Using the premise presented as a basis, argues about the intervention of fiscal policy as an instrument to promote growth, sustainability and economic stability of a country. (Provides an example in detail.)

Minimum 3 references and cites