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What are three economic stances that a government may have? Describe each of these stances.

1 Answer

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The three stances are the neutral fiscal stance, which occurs when the budget is well balanced and the economy is in equilibrium; then there's the expansionary fiscal stance in which the spending exceeds tax revenues, which occurs usually during hard periods such as recessions; and the final stance is the contractionary fiscal stance, in which the government spends less than what the tax revenue is.
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User Jules Lamur
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