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Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364

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BuyFindarrow_forward

Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364
Textbook Problem

Is expansionary fiscal policy more attractive to politicians who believe in larger government or to politicians who believe in smaller government? Explain your answer.

To determine

To write: Whether the expansionary fiscal policy is more attractive to politicians of smaller government or larger government.

Explanation

Expansionary fiscal policy is mere a fiscal action and nothing but the Government increases its spending or reduces its tax so as to increase the aggregate demand.

The government that spends too much is called a larger government. On the other hand smaller government denotes the government...

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