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What Are the Impacts of an Expansionary Fiscal Policy on Output

question 64

Essay

What are the impacts of an expansionary fiscal policy on output and the inflation rate in the short run? How about in the long run?


Definitions:

Guidelines

Recommendations or principles that provide direction or advice on how to proceed or behave in specific situations.

Rewards

Are benefits, compensations, or recognitions provided to individuals to acknowledge their achievements and motivate future performance.

Reinforcement

In psychology, a process in which a behavior is strengthened or increased, either by a positive stimulus (reward) or removal of a negative one.

Delivered

The act of bringing something to a destination or achieving a desired result, especially as promised or expected.

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