Using fiscal policy, the best way to get the economy out of a recession in the short run is to
Government expenditures on goods and services or taxes.
A) decrease; increase
B) decrease; decrease
C) increase; increase
D) increase; decrease

Question

Quizplus · Accepted Answer

Increasing government expenditures and decreasing taxes both stimulate aggregate demand, which can help pull an economy out of a recession by boosting consumption and investment.

Using Fiscal Policy, the Best Way to Get the Economy