Government Policy: Mastery Test
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What should the government's fiscal policy be during recession?
During a recession, the government should ideally follow a/an expansionary
to reduced
policy. This would bring about an increase in output, leading
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19-05-2024
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Government Policy: Mastery Test
ghts reserved
to search
Select the correct answer from each drop-down menu.
What should the government's fiscal policy be during recession?
During a recession, the government should ideally follow a/an expansionary
to reduced
policy. This would bring about an increase in output, leading
Reset
Next
Submit Test
Tools
Info
66°F
10:30 PM
5/19/2024

Answer :

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GinnyAnswer GinnyAnswer · Answer 1 · 2024-05-19T22:30:42-04:00

Final answer:

During a recession, the government should implement expansionary fiscal policy through increases in government spending or reductions in taxes to boost the economy.

Explanation:

During a recession, the government should ideally follow expansionary fiscal policy to increase aggregate demand. This can be achieved through increases in government spending or reductions in taxes. Expansionary fiscal policy helps stimulate output and reduce the impact of recession.

Learn more about Government Fiscal Policy during Recession here:

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