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15-05-2017
Social Studies

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If a government reduces taxes in order to increase the level of aggregate demand, what type of fiscal policy is being used

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26-05-2017

If a government reduces taxes in order to increase the level of aggregate demand, the type of fiscal policy used is known as EXPANSIONARY FISCAL POLICY. This is done by government in order to control the inflation rate in the country and encourage its continuous economic growth.

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