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11 November, 07:50

Assume the economy is in recession. identify how fiscal policy could be used to close the recessionary gap. how does that compare to monetary policy

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  1. 11 November, 09:12
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    Fiscal policy to close a recessionary gap typically includes stimulus plans, which increase government spending to facilitate the flow of capital into the economy. Another method is tax cuts to make more money available for business investment and consumer spending. Monetary policy deals with setting interest rates and total money supply, and is usually implemented by central banks.
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