What two fiscal policy actions could the government take if it wants to stimulate the economy during a recession? What two fiscal policy actions could the government take if it wants to slow the economy down during a period of rapid growth and
increasing inflation?
During a recession, the government could increase spending or cut taxes to try to stimulate the economy. During a period of rapid growth and increasing inflation, the government could decrease spending or increase taxes to try to slow the economy.
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Comment on the following statement: "Since product differentiation allows price competitors to establish some market power, it would be more efficient to not permit product differentiation."
What will be an ideal response?
What are policy lags? Explain the three policy lags faced by the Fed when implementing monetary policy
What will be an ideal response?
The earnings gap between better- and lesser- educated workers has held steady
Indicate whether the statement is true or false
Which of the following is the most liquid store of purchasing power?
a. A dollar bill. b. Common stock. c. Gold. d. Real estate.