If the economy is producing more than its potential GDP, deficit than the actual deficit. discretionary fiscal policy the standardized employment deficit the automatic stabilizers expansionary fiscal policy da da da da da will show a larger

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Fiscal Policy and Money Market

Fiscal policy is one of the important tools that is used by the government to control inflation or aggregate demand in the economy. Under this policy, there are two rules which are used by the government, one is the expenditure of the government and the other is the taxation or income of the government which it collects from the public.