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Fiscal Policy
Gov’t spending + Taxation (inverse)
1
...
Improve distribution of income
3
...
Monetary more effective in Macro
stability
Keynesian: powerful effect when operating at full capacity
-
Taxations
- Direct: paid to exchequer by entity tax is levied against
- Indirect: on spending paid by producer then passed to consumer through higher
prices, eg
...
Discourages work