If the economy is sluggish,with low productivity and high unemployment,the fiscal policy action on the demand side would be to

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When the economy is sluggish with low productivity and high unemployment, the best fiscal policy action on the demand side would be to increase government spending. This would stimulate demand and provide a boost to the economy, helping to create jobs and improve productivity. Increasing taxes or cutting business taxes would not be as effective, as it could decrease demand even further and not provide the necessary stimulus. Decreasing government spending could harm the economy further, by reducing demand and potentially leading to further job losses.

If the Economy Is Sluggish,with Low Productivity and High Unemployment,the