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Fiscal Policy vs. Monetary Policy
Essay specific features
Written by:
Mabel J
Date added:
April 26, 2015
Level:
University
Grade:
A
No of pages / words:
3 / 667
Was viewed:
2216 times
Rating of current essay:
Essay content:
In our full market economy, we must use these economic policies to control aggregate demand. When these policies are used to stimulate the economy during a recession, it is said that the government is pursuing expansionary economic policies.
Fiscal Policy is described as changing the taxing and spending of the federal government for purposes of expanding or contracting the level of aggregate demand; these are designed to increase short-run economic growth...
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In a recession, an expansionary fiscal policy involves lowering taxes and increasing government spending. By cutting taxes, increasing government spending programs, and increasing transfer payments, more money is in the economy, more income, and more spending. This can be done through the federal budget process; however, the problem with fiscal policy is lag time...
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