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What role does fiscal policy play in influencing aggregate demand and managing economic fluctuations? Provide examples of expansionary and contractionary fiscal policies.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What role does fiscal policy play in influencing aggregate demand and managing economic fluctuations? Provide examples of expansionary and contractionary fiscal policies.

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