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A Type of Federalism Existing Since the New Deal Era

question 26

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A type of federalism existing since the New Deal era in which grants-in-aid have been used strategically to encourage states and localities (without commanding them) to pursue nationally defined goals is known as __________ federalism.


Definitions:

Aggregate Demand

Aggregate demand is the total demand for all goods and services in an economy at a given overall price level and in a given time period.

Active Stabilization Policy

Government policies aimed at reducing economic fluctuations through fiscal and monetary actions.

Fiscal Policy

Government policies related to taxation and spending that aim to influence economic conditions.

Monetary Policy

The set of actions by a central bank or monetary authority to control the supply of money and interest rates in its economy.

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