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Fiscal policy is the practice of changing taxes or government spending with the goals of keeping the economy near full employment and keeping inflation relatively
Fiscal policy is the practice of changing taxes or government spending with the goals of keeping the economy near full employment and keeping inflation relatively low. A. Fiscal policy may be expansionary. What specific changes constitute expansionary fiscal policy? Show, on an AD/AS diagram, an economy in which expansionary fiscal policy would be appropriate and the effect of expansionary fiscal policy on that economy. (6 points
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