If recession is the most significant issue in an economy, an appropriate fiscal policy response would be to decrease government purchases of goods and services.

Question

If recession is the most significant issue in an economy, an appropriate fiscal policy response would be to decrease government purchases of goods and services.​

Quizplus · Accepted Answer

If recession is the most significant issue in an economy, the appropriate fiscal policy response would be to increase government purchases of goods and services to stimulate economic growth and demand. Decreasing government purchases would likely further slow down the economy.

If Recession Is the Most Significant Issue in an Economy