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Chapter 29 Fiscal Policy

Chapter 29 Fiscal Policy

Author: Matthew Lonn

Students will examine expansionary government policy and contractionary government policies and how they are implemented to close recessionary and inflationary gaps.

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Questions you should be able to answer after the lesson.

How does fiscal policy differ from monetary policy and the classical approach to economics?

What is the difference between contractionary and expansionary fiscal policy?

What are specific examples of contractionary policies?

What are specific examples of expansionary policies?

Why would governments use the multiplier when trying to close a recessionary or expansionary gap?

Chapter 29 Notes

Fiscal policy explained with graphs.

John Maynard Keynes on Fiscal Policy