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In the previous discussion we focused mostly on a simplified economy. In this part we are bringing in the government spending and taxes, as well as exports and imports and the role of international trade. By looking at the whole picture we can see the importance of the aggregate expenditure in the economy more completely. We also address the policies that can help stimulate demand to pull the economy out of a recession, and policies that can stabilize the economy and prevent emergence of sever inflationary pressures. For each set of policies there are a number of pros and cons, and the debate on the best and most effective policy package continues. Perhaps one way of looking at the mix of policies for stabilizing the economy is that different economic circumstances require different policy packages with emphasis on different policy tools.