Why fiscal policy have a strong impact on aggregate demand


Problem

Does fiscal policy have a strong impact on aggregate demand? Did the large budget deficits of the 1980s lead to excessive aggregate demand? Did the budget surpluses of the late 1990s restrain aggregate demand? Discuss.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Why fiscal policy have a strong impact on aggregate demand
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