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7 August, 19:51

Describe appropriate discretionary fiscal policy according to keynesian economics to smooth out the business cycle.

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  1. 7 August, 23:11
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    The appropriate description of the discretionary fiscal policy according to keynesian economics to smooth out the business cycle is the government should increase its spending or/and reduce taxes (run a deficit), or increase government taxes and spending by the same amount to combat a recession. The government need to do just the opposite to combat inflation during the economic expansion.
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