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. fiscal policy in the economic cycle stability is positive with the cycle, and potentially many macro instability. fiscal policy should be consistent with the position of the economic cycle with output potential. The policy reflected in the recession phase cycle usually has a positive influence on economic growth. Note also that, the policy response has also cycle latency, that is, there is usually no immediate positive response. Thus the implementation of fiscal policy needs to be made urgently in order to maximize the stimulus effects of fiscal policy with the fiscal tools be used flexibly according to the degree of influence. Should use the expanded fiscal policy when the economy is below potential output level. However the application of fiscal policy expanded continuously during long easy to cause unrest, leading to a recession. Therefore, the State should stimulate growth with caution, in the phase of growth on the level of potential, the State should not extend the policy to your tags.
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