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Where is fiscal policy used?

Updated: 11/1/2022
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16y ago

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Fiscal policy is used by the government mainly in the following ways; by taxation and spending. This is how it is done. To increase GDP, the government increases its budget, spends say $45 billion into the economy which is an expansionary policy. Whereas, if the government takes out $45 billion, it would mean a decrease in jobs, increased unemployment, this is known as contractionary.

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