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What is fiscal Policy? Suppose an economy is experiencing low economic growth and high unemployment. As an economic advisor to the Ministry of finance suggest
What is fiscal Policy? Suppose an economy is experiencing low economic growth and high unemployment. As an economic advisor to the Ministry of finance suggest an expansionary fiscal policy and describe briefly step by step how you would expect the economy to move towards an increase in GDP and higher employment. Would you expect the policy you recommended (expansionary fiscal policy) to be highly effective? If not why? Explain carefully with reference to time-lags, magnitude and crowding out
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