8 min read
This study guide covers fiscal policy, including government spending and taxation. It explains expansionary and contractionary fiscal policies, the difference between discretionary and non-discretionary policies, and how these policies affect recessionary and inflationary gaps. The guide also details calculating spending and tax multipliers and provides practice questions and exam tips.
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Question 1 of 11
Ready to flex your fiscal policy knowledge? 💪 What are the TWO primary tools the government uses to steer the economy?
Interest rates and reserve requirements
Government spending and taxation
Inflation targets and exchange rates
Money supply and discount rate