When the economy is hit by spending fluctuations, the government can try to minimize the effects by

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When the economy is hit by spending fluctuations, the government can use a combination of changing government expenditures on services, changing government expenditures on goods, and changing taxes to minimize the effects. By increasing government purchases of goods and services, the government can stimulate demand and economic growth. By lowering taxes, the government can increase disposable income and boost consumer and business spending. By increasing government expenditures on services such as infrastructure, education, and healthcare, the government can also boost economic growth and stability. Therefore, all of the above options can be effective in minimizing the effects of spending fluctuations in the economy.

When the Economy Is Hit by Spending Fluctuations, the Government