You can write maximum three pages for these questions. 12 pt. Time New Roman preferred. Please write them in your own words.Fiscal Policy:1. Describe why federal government’s budget depends on three factors: the rate of taxation, the size of GDP, and its own expending levels. 2. Explain the pros and cons of a budget policy aimed at achieving a balance budget in each fiscal year.3. Explain the pros and cons of a budget policy aimed at achieving both full employment and a balance budget over the life of business cycle.
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