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Fiscal Policy and the National Debt

Fiscal Policy and the National Debt. What fiscal policy is and why it is an important tool in managing economic fluctuations Which policies constitute an expansionary fiscal policy and which constitute a contractionary fiscal policy

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Module 30: Long-run Implications of Fiscal Policy: Deficits and the Public Debt

Module 30: Long-run Implications of Fiscal Policy: Deficits and the Public Debt. 1. Fiscal Policy Revisited. Recessionary Gap The gap that exists whenever equilibrium real GDP per year is less than full-employment real GDP as shown by the position of the LRAS curve.

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357 views • 24 slides

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Higher government transfers - PowerPoint PPT Presentation

Fiscal Policy and the National Debt

Module 30: Long-run Implications of Fiscal Policy: Deficits and the Public Debt