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Unformatted text preview: government to try to manage the economy. Beginning with the New Deal, however, the government came more and more to use taxes and spending to try to create growth in the economy. Lately, however, the political will to cut spending or increase taxes seems to have been lost. The US has moved away from Keynesianism (which countenances the use of fiscal policy to slow the economy as well as to heat it) and has moved toward a "free lunch" fiscal policy where taxes are constantly lowered without any decreases in government spending....
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This note was uploaded on 07/17/2011 for the course ECON 1204 taught by Professor Bolden during the Spring '11 term at Southeaster Oklahoma State University.
- Spring '11
- Fiscal Policy