Explain how the implementation of this policy is related to the simple spending multiplier. Explain how the fiscal policy could solve the problem of unemployment.
Explain how the implementation of this policy is related to the simple spending multiplier. Explain how the fiscal policy could solve the problem of
Fiscal policy is a branch of monetary policy where the government try to manage the or adjust the spending levels of the economy by increasing and decreasing the tax levels and monitoring the spending technique in the economy.
Simple money multiplier refers to the circular flow of income or money in an economy which explain that when there is and increase in the spending done by an household. firm or business in the economy it leads to an increase in the economic output and help increase the value of money. Multiplier means how one's spending in economy helps the other in income growth and multiplies the income of the economy overall.
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