To ameliorate the effects of a recession, a government could enact appropriate policies including:

Question

Quizplus · Accepted Answer

Increasing government purchases can stimulate demand in the economy as the government is spending more money, which can lead to increased production and job creation. Increasing tax rates or taxes by a fixed amount would reduce the disposable income of individuals and businesses, leading to decreased demand and economic activity. Decreasing defense spending may lead to job losses and reduced economic activity in defense-related industries.

To Ameliorate the Effects of a Recession, a Government Could