How fiscal policy can stabilize economy

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Reference no: EM1371648

Q. Lecturer Dr. ‘Fiscal policy' is government operation of government spending (G) and taxes (T). Typically we consider problem of how government can manipulate G and T so as to control economic variables such as output, inflation, interest rates, etc. Issues: how fiscal policy can ‘stabilize' economy? What about government borrowing and public debt?

Reference no: EM1371648

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