The worst case for fiscal policy is when a recession is caused by a decrease in aggregate demand.

Name: The worst case for fiscal policy is when a recession is caused by a decrease in aggregate demand.
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Fiscal policy, which involves government spending and taxation, is actually most effective in addressing a recession caused by a decrease in aggregate demand. By increasing government spending or decreasing taxes, fiscal policy can help boost aggregate demand.

The Worst Case for Fiscal Policy Is When a Recession