If an economy is in a recession, the government might _______ spending to _______ aggregate demand.
A) increase; increase
B) decrease; decrease
C) increase; decrease
D) decrease; increase

Question

Quizplus · Accepted Answer

In a recession, the government might increase spending to stimulate the economy by increasing aggregate demand, which can help to boost economic activity and potentially lead out of the recession.

If an Economy Is in a Recession, the Government Might