In order to help the economy recover from a recession using fiscal policy,the government can ________ so that aggregate demand increases.
A)cut taxes
B)raise taxes
C)cut government expenditure on goods and services
D)raise interest rates
E)decrease the quantity of money

Question

Quizplus · Accepted Answer

By cutting taxes, people will have more disposable income to spend or invest. This will lead to an increase in aggregate demand, which can stimulate economic growth and help the economy recover from a recession.

In Order to Help the Economy Recover from a Recession