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Excess Capacity
Excess capacity refers to a situation where a company is operating below its maximum output level, indicating that it can produce more with the current resources if there is higher demand.
Expansionary Fiscal Policy
To fight recessions, the federal government lowers taxes and/or raises spending.
Government Spending
Expenditures made by the government of a country on collective needs and wants such as infrastructure, public safety, education, and healthcare.
Public Debt
Money that is owed by a government to creditors within the country or externally, arising from borrowing to finance expenditures exceeding tax revenues.
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