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Topic: Business
Number of pages / Number of words: 2 / 450
Essay's paper body

pp.545-552).

References

Sheffrin, S. M. & O'Sullivan, A. (2006). Economics: Principles & Tools (4th ed.) Upper Saddle River, NJ: Pearson Education, Inc.


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When governments attempt to control the economy through fiscal policy, they are applying what is known as stabilization policy. These policies are used in attempt to move the economy closer to full employment or potential output (Sheffrin & O'Sullivan 2006. pp.548). Some problems can occur, though, when trying to stabilize the economy...


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