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The idea of using government spending and taxation as a means of controlling aggregate demand has its origins in the writings of J M Keynes. He rejected the notion that spending and employment
could be increased through market forces and changes in wages and prices. In the recent credit-crunch inspired recession many countries have used expansionary fiscal policies but with varying degrees of
success.
marlinbito answered the question on July 5, 2018 at 12:13
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