According to traditional Keynesian analysis,fiscal policy operates by

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According to traditional Keynesian analysis, fiscal policy operates by directly affecting aggregate demand through changes in government spending and/or taxation. This is based on the idea that government intervention can help to stabilize the economy during periods of recession or inflation. By increasing government spending or lowering taxes, fiscal policy can stimulate consumer and business spending, which in turn can lead to increases in aggregate demand and economic activity. Conversely, by decreasing government spending or raising taxes, fiscal policy can reduce aggregate demand and help to control inflation.

According to Traditional Keynesian Analysis,fiscal Policy Operates by