Austerity is an economic policy that emphasizes high taxes and government spending cuts with the aim of reducing government deficits and debt. It is usually followed in times of economic crisis or recession where there is a need to control the budget. This policy is often criticized for causing negative impacts on vulnerable social groups and for slowing down economic growth.

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What Is Austerity

Question 35

Multiple Choice

What is austerity?

A) A social policy that encourages assimilation of immigrants
B) An economic policy that emphasizes low taxes and high spending
C) An economic policy that emphasizes high taxes and government spending cuts
D) An economic policy that emphasizes low taxes and government spending cuts
E) A social policy that seeks increased European integration

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