Why we see budget deficits going up during the recession

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Reference no: EM13219411

Our economy is currently in recession so let's discuss how discretionary Fiscal Policy can help the situation. Please explain why tax cuts may be needed now and why we see budget deficits going up during the recession? What is the 'Crowding Out' effect? What are the 'Automatic Stabilizers'? What impact do they have on the economy?

Reference no: EM13219411

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