8 min read
This study guide covers fiscal policy, including government spending and taxation. It explains expansionary and contractionary fiscal policies, the difference between discretionary and non-discretionary policies, and how these policies affect recessionary and inflationary gaps. The guide also details calculating spending and tax multipliers and provides practice questions and exam tips.
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Question 1 of 10
What is the primary way the government uses fiscal policy to manage the economy? 🤔
By controlling the money supply
By setting interest rates
Through government spending and taxation
By regulating international trade