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One major function of the government is to stabilize the economy How can that achieved? What are the Fiscal Policy Choices? Explain when is the

One major function of the government is to stabilize the economy

  1. How can that achieved? What are the Fiscal Policy Choices?
  2. Explain when is the policy needed, and what is the solution?
  3. Suppose the government of Indonesia is running a balanced budget. An election is approaching and the government decides on a one-time, temporary, massive tax cut that will cut tax revenue substantially in a year. After the election year, tax rates and tax revenue return to normal.
    1. How to finance this temporary budget deficit?
    2. How will it affect economic growth?
    3. Use any data you can collect to reflect Indonesian situation

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