To counteract the effects of a recession, policymakers can:
A) reduce government spending.
B) increase government spending.
C) increase tariffs.
D) increase tax rates.

Question

Quizplus · Accepted Answer

To counteract the effects of a recession, policymakers typically aim to stimulate demand and boost economic activity. One of the primary ways to do this is by increasing government spending, which can have a multiplier effect on the economy as more money flows through it. Reducing government spending, increasing tariffs, or increasing tax rates can have the opposite effect by decreasing demand and further slowing economic growth. While there may be other options and strategies to address a recession, increasing government spending is generally seen as a key tool for boosting demand and stimulating economic activity.

To Counteract the Effects of a Recession, Policymakers Can