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>> NOTES GLOSSARY OF TERMS AND REFERENCES 8l 89 Digitized for FRASER ... lecture hall filled to capacity, but an overflow audience had to be served by closed-circuit television installed in several classrooms. Fiscal policy, stabilization, and growth : prudence or abstinence? Current primary spending took up on average 93% of states’ revenues in 2017. The second type of fiscal policy is contractionary fiscal policy, which is rarely used. 1 Cite as: Olivier Blanchard, course materials for 14.452 Macroeconomic Theory II, Spring 2007. n&;��������K= F��b ����w$i��g#��DF���4����V�|��gAJQvg�1,A����E�y$��+vdû5�B$���f�R��]ܨƎ;)������#����%U What causes short-run fluctuations? With few exceptions, the articles are also summarized in Romer or Blanchard and Fischer. Fiscal policy may affect aggregate supply as well as demand (see Figure 12‑6 example). �M��aR.\�Yf�1���L_I��u}�e9l�� Lecture 11 Monetary and Fiscal Policy. /Filter /FlateDecode Lecture Notes Robert M. Kunst March 2006. 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