a) Define what are  expansionary and contractionary discretionary fiscal policies.

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter17: Federal Deficits, Surpluses, And The National Debt
Section17.1: The Federal Budget Balancing Act
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a) Define what are  expansionary and contractionary discretionary fiscal policies.

b) Define what is automatic stabiliser in fiscal policy and provide 2 examples.

c) Consider an economy that is operating below the full-employment level of GDP, what would be the effect of an increase in government spending on agreegated demand and real GDP.

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