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Expansionary Fiscal Policy

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Added on  2023/03/23

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AI Summary
This document discusses the concept of expansionary fiscal policy and its effects on the economy. It explains how the government can increase aggregate demand through increased expenditure or reduced taxes. The document also explores the impact of expansionary fiscal policy on interest rates, investment, and the crowding-out effect. Additionally, it examines the relationship between nominal wages and the level of output in the economy.

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