16.1 What Is Fiscal Policy? 16.2 The Effects of Fiscal Policy on Real GDP and the Price Level 16.3 Fiscal Policy in the Dynamic Aggregate Demand and Aggregate Supply Model 16.4 The Government Purchases and Tax Multipliers 16.5 The Limits of Using Fiscal Policy to Stabilize the Economy 16.6 Deficits, Surpluses, and Federal Government Debt 16.7 The Effects of Fiscal Policy in the Long Run Appendix: A Closer Look at the Multiplier