Economics (MindTap Course List)
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Economics (MindTap Course List)
Suppose the economy is in a recessionary gap, and both Smith and Jones advocate expansionary fiscal policy. Does it follow that both Smith and Jones favor so-called big government?
An expansionary fiscal policy and government.
Generally, the government uses expansionary fiscal policy to eliminate the recessionary gap in an economy. However, it does not mean that expansionary policy is only suitable for big government. The reason is that an expansionary fiscal policy only results in a larger government when the expenditure rise started to sh...
Chapter 11 Solutions
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