During the Great Recession the fiscal policy measures taken to exit the recession was

Question

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Lowering taxes and running budget deficits is a typical fiscal policy measure taken to exit a recession. This is because it increases the disposable income of individuals and encourages spending, leading to an increase in economic activity. Running budget deficits also allows for the government to increase spending on infrastructure projects and other initiatives that can create jobs and stimulate growth. Higher taxes and budget surpluses can have the opposite effect by reducing disposable income and decreasing government spending, potentially exacerbating a recession.

During the Great Recession the Fiscal Policy Measures Taken to Exit