Question
1.Expansionary fiscal policy is used to combat a recession. The problem during a recession is that aggregate demand is too low, so increasing government spending
1.Expansionary fiscal policy is used to combat a recession. The problem during a recession is that aggregate demand is too low, so increasing government spending and/or a reduction in taxes will increase aggregate demand. Expansionary fiscal policy will create a deficit.
TrueFalse
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Microeconomics
Authors: David Besanko, Ronald Braeutigam
5th edition
1118572270, 978-1118799062, 1118799062, 978-1118572276
