The economy is experiencing inflation and the unemployment rate has dropped from 4.2% to 2.4%. if the government wanted to influence the economy, which tool of fiscal policy should the government implement?

If the economy is experiencing inflation and the unemployment rates aren't that high, the government should implement austerity measures, as even though they would increase unemployment, they would significantly lower the inflation. Austerity can be risky, though, as it can have negative impacts in economy by cutting expenses in important sectors.

The government has to implement Contractionary fiscal Policy. It means it has to apply fiscal policy to decrease aggregate demand. It involves decrasing government purchases and/or increasing taxes.

the first two-party system consisted of the federalist party, who supported the ratification of the constitution, and the democratic-republican party or the anti-administration party (anti-federalists), who opposed the powerful central government, among others, that the constitution established when it took effect in

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