In working to correct a recession with fiscal policy, the government can

Question

Quizplus · Accepted Answer

The best choice is to raise government expenditures and/or lower taxes, as this will increase aggregate demand and help stimulate economic growth. Options A and B may not address the root cause of the recession and may even cause inflation. Option C would be more appropriate for addressing long-term growth rather than immediately correcting a recession.

In Working to Correct a Recession with Fiscal Policy, the Government