What is the main reason for employing contractionary fiscal policy in a time of strong economic growth?

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What is the main reason for employing contractionary fiscal policy in a time of strong economic growth? What is the main reason for employing expansionary fiscal policy during a recession?

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Fundamentals of Corporate Finance

ISBN: 978-0321818171

2nd Canadian edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Posted Date: Aug 31, 2018 09:23 AM

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What is the main reason for employing contractionary fiscal policy in a time of strong economic growth?

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During a period of strong growth aggregate demand increases which shifts th... View the full answer

Fundamentals of Corporate Finance

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