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Explain how monetary and fiscal policy is implemented and how they can be used to influence GDP and the price level.

Topic:

Firstly, explain how monetary and fiscal policy is implemented and how they can be used to influence GDP and the price level. Secondly, the quotation above highlights the unprecedented use that has been made of fiscal policy in countries such as the UK during the crisis. Briefly consider whether fiscal policy will remain the key policy instrument in these sorts of countries in the near future.

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