If government decided to increase taxes or decrease its spending, most likely this was to correct:
A)a recession.
B)inflation.
C)high unemployment.
D)equilibrium.

Name: If government decided to increase taxes or decrease its spending, most likely this was to correct: A)a recession. B)inflation. C)high unemployment. D)equilibrium.
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Question

Quizplus · Accepted Answer

Increasing taxes or decreasing government spending are contractionary fiscal policies typically used to reduce inflation by decreasing aggregate demand.

If Government Decided to Increase Taxes or Decrease Its Spending