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MACROECONOMICS FOR TODAY
10th Edition
ISBN:9781337613057
Author:Tucker
Publisher:Tucker
Chapter13: Federal Deficits, Surpluses, And The National Debt
Section: Chapter Questions
Problem 11SQP
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Government of Antigua and Barbudacan introduce fiscal policies such as financing of employment programs which will boost employment and provide income to the unskilled wager laborer, putting money into their hands can raise demand.  Government expenditure will be required to increase in order to generate employment for the unskilled workers, bring down unemployment rate, and generate demand.  In order to raise government expenditure, the deficit financing key, the government would have to sell government bonds.  The government could also put proper tax collection measures in place to collect the outstanding taxes that are already on the books that have not been collected. This to decrease the employment rate from 14.83%.

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