According to traditional Keynesian economics, expansionary fiscal policy initiated by the federal government

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According to traditional Keynesian economics, expansionary fiscal policy initiated by the federal government is an appropriate way to prevent recessions and depressions. This is because during a recession or depression, there is a lack of demand in the economy, often resulting from a decrease in consumer spending. In this case, the government can step in and increase its spending or reduce taxes, which will increase aggregate demand and stimulate economic growth. This is known as expansionary fiscal policy.

According to Traditional Keynesian Economics, Expansionary Fiscal Policy Initiated by the Federal