What is the role of fiscal policy in dealing with recession as well as in having economic stability at employment level? (500 words)

- The fiscal policy comes into play - this is a policy that entails government spending in a manner that it affects the overall economic conditions in the country.

- Inform about how the growth of fiscal policy can lead to the reduction of recessionary deficits - government expenditure/reduced taxes increases aggregate demand hence output and employment are boosted.

- Discuss effects: a bigger public spending makes it possible but stimulates economy through the evolving cycle of production.

- Inflation could be curbed by counter active fiscal policy; however, it can augment the scale of the recession - i.e. reduced spending/higher taxes.

- Elucidate on fiscal policy automatic stabilizers - measures to reduce incomes that hinder during down turns.

- Talk about job market role in creating full employment not causing uncontrolled rate of inflation.

- Finish by emphasizing main roles of fiscal policy in this context within the frame of monetary policy and stress the risks that may be involved in cases of excessive usage.