Illustrate the following graphically. a. Fiscal policy eliminates an inflationary gap. b. Fiscal policy destabilizes the economy. c. Fiscal policy only partly eliminates a recessionary gap. | Homework.Study.com
:max_bytes(150000):strip_icc()/DDM_INV_fiscal-policy_df-5199e67bb34b4dcf83b058fa61ca4ad9.jpg "All About Fiscal Policy: What It Is, Why It Matters, and Examples")
All About Fiscal Policy: What It Is, Why It Matters, and Examples
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Fiscal Policy
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FISCAL POLICY Inflation Real GDP AS 1 AD 1 AD 2 Economy in recession, Unemployment = 9.1% Expansionary Fiscal Policy needed Lower Taxes & ↑ Gov't spending. - ppt download
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