In a typical recession, generally only ________ expenditure rises.

Question

Quizplus · Accepted Answer

During a recession, the government often increases its spending in order to stimulate the economy and boost demand. This can be done through measures such as infrastructure projects, tax cuts or direct payments to citizens. As a result, government expenditure typically rises during a recession. Investment, exports, and imports tend to decrease during a recession, while inflation may also fall due to reduced demand.

In a Typical Recession, Generally Only ________ Expenditure Rises