To combat a recession, the correct fiscal policy would be a

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To combat a recession, the correct fiscal policy involves stimulating economic activity. This can be achieved by cutting taxes, which puts more money into consumers' hands, and increasing government spending, which injects money directly into the economy. Both measures are designed to increase demand. Running a budget deficit is often a consequence of these actions, as government expenditures exceed tax revenues.

To Combat a Recession, the Correct Fiscal Policy Would Be