Fiscal Policy and Economic Growth

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wbrenzfrl

Economics

Description

At the end of this activity, you will have examined the role of an active fiscal policy in the long-run growth of the economy.

Does an active fiscal policy help or hinder long-run growth in the economy? The textbook presents arguments that can be used to support both sides in this debate.

Study the arguments on both sides and respond to the following:

  • Should the US use fiscal policy to encourage long-run growth of the economy? Why or why not?

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Explanation & Answer

Attached.

Running head: FISCAL POLICY

1

Fiscal Policy
Name
Institution

FISCAL POLICY

2

In my perspective, fiscal policy can be used to support the long run economic
development of the US. The fiscal policy will be composed of two parts. Firstly, it is the
government spending. In this case, the government will increase the spending on goods and
services. In return, this will mean that the demand for the goods and services will increase (Phuc
Canh, 2018). Consequently, different co...


Anonymous
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