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What is fiscal policy?

Posted on April 14, 2014 at 5:30 PM

Fiscal policy consists of government action which seeks to shift aggregate demand (and sometimes aggregate supply) to bring about full employment. The government does this primarily through changing its levels of spending and taxes.

AP Macroeconomics Unit 3 AD/AS & Fiscal Policy

Categories: AP Macroeconomics, Macro Unit 3 AD/AS and Fiscal Policy

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