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As we see in the simulation, government has an important role to play in keeping the economy in a posture of growth, while dealing with inflation and recession. This paper will also show how government spending and taxation are fiscal policy tools that affect the real GDP and aggregate income of the economy. Any increases or decreases in government spending and taxes aid in managing recession and inflation. The paper concludes that there are no actions to guarantee optimum results, so policy makers must be flexible and evaluate the effectiveness of fiscal policy changes. The paper also applies these principles to the workplace...
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Common topics in this essay:
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