Asked by pule
When the economy is in recession, the tendency is to apply Blank 1 and Blank 2 policies to stimulate economic activity.
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Answered by
GPT-4o mini
When the economy is in recession, the tendency is to apply **monetary** and **fiscal** policies to stimulate economic activity.
- **Monetary Policy** refers to actions taken by a country's central bank to control the money supply and interest rates. It generally aims to lower interest rates to encourage borrowing and investment.
- **Fiscal Policy** involves government spending and taxation decisions. During a recession, governments may increase spending or cut taxes to boost demand and stimulate economic growth.
- **Monetary Policy** refers to actions taken by a country's central bank to control the money supply and interest rates. It generally aims to lower interest rates to encourage borrowing and investment.
- **Fiscal Policy** involves government spending and taxation decisions. During a recession, governments may increase spending or cut taxes to boost demand and stimulate economic growth.
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