8.3.4 - Types of Fiscal Policy
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Practice Questions
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Define fiscal policy.
💡 Hint: Think about how a government manages money.
What does expansionary fiscal policy aim to achieve?
💡 Hint: Remember the goal is to boost the economy.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the main goal of expansionary fiscal policy?
💡 Hint: Focus on the main objective of 'expanding' the economy.
True or False: Contractionary fiscal policy increases government spending.
💡 Hint: Think about what 'contraction' implies.
1 more question available
Challenge Problems
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Create a scenario in which a government balances between expansionary and contractionary fiscal policies during an economic cycle. Describe potential actions the government should take and their impacts.
💡 Hint: Consider the trade-off between stimulating growth and controlling inflation.
Evaluate the advantages and disadvantages of expansionary fiscal policy over a prolonged period. Discuss potential impacts on debt and inflation.
💡 Hint: Reflect on what might happen when the government keeps engaging in expansionary activities.
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