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    Does an active fiscal policy help or hinder long run growth

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    Does an active fiscal policy help or hinder long run growth in the economy? The textbook presents arguments that can be used to support both sides in this debate. How do they compare? List reasons why an active fiscal policy helps the long run growth of the economy. List reasons why an active fiscal policy hinders the long run growth of the economy. Should the US use fiscal policy to encourage long run growth of the economy? Why?

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    Solution Preview

    Does an active fiscal policy help or hinder long run growth in the economy? The textbook presents arguments that can be used to support both sides in this debate. How do they compare? List reasons why an active fiscal policy helps the long run growth of the economy. List reasons why an active fiscal policy hinders the long run growth of the economy. Should the US use fiscal policy to encourage long run growth of the economy? Why?

    Solution:

    In my opinion, it hinders long run growth in the economy. It fixes a short term problem, but makes the original ...

    Solution Summary

    Does an active fiscal policy help or hinder long run growth in the economy? The textbook presents arguments that can be used to support both sides in this debate. How do they compare? List reasons why an active fiscal policy helps the long run growth of the economy. List reasons why an active fiscal policy hinders the long run growth of the economy. Should the US use fiscal policy to encourage long run growth of the economy? Why?

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