During the global recession which followed the recent financial crisis in the United States, economic policy makers used_________ fiscal policy to_________ aggregate demand.
A) expansionary; increase
B) expansionary; decrease
C) contractionary; decrease
D) contractionary; increase

Question

Quizplus · Accepted Answer

During the global recession, policymakers typically use expansionary fiscal policy to increase aggregate demand by increasing government spending or cutting taxes to stimulate economic growth.

During the Global Recession Which Followed the Recent Financial Crisis