Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Fiscal stimulus refers to the amount by which the structural deficit in a nation rises. It can also occur when the structural surplus falls. Examples are the tax cuts announced by the government or an increase in the amount spent by the government.
Fiscal restraint refers to the amount by which the structural deficit in a nation falls. It can also occur when the structural surplus rises. Examples are reduction in government spending and increase in the tax rates by the government.
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