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Discuss how the federal government can use the budget to affect fiscal policy. What are the pros and cons of the current federal government budget sequester
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Fiscal policy and budgeting
How the federal government can use the budget to affect fiscal policy
To start with, fiscal policy can be defined as the use of budget as well as taxation
measures by the government to influence the economy. Fiscal policy occurs in two formsexpansionary fiscal policy and contractionary fiscal policy (Sims 125). The expansionary fiscal
policy is associated with surplus government spendi...
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