Question
Why does the government sometimes use an expansionary fiscal policy?
Group of answer choices
to slow down the economy because fast-growing demand can exceed supply
to expand the government’s control over non-defense spending
to control the demand for consumer goods and services
to encourage growth and try to stop or prevent a recession
Group of answer choices
to slow down the economy because fast-growing demand can exceed supply
to expand the government’s control over non-defense spending
to control the demand for consumer goods and services
to encourage growth and try to stop or prevent a recession
Answers
GPT-4o mini
The correct answer is:
**to encourage growth and try to stop or prevent a recession.**
Expansionary fiscal policy is typically employed by the government during economic downturns or recessions in order to stimulate demand, increase economic activity, and promote growth. This can involve increasing government spending or cutting taxes, which puts more money into consumers' and businesses' hands, encouraging spending and investment.
**to encourage growth and try to stop or prevent a recession.**
Expansionary fiscal policy is typically employed by the government during economic downturns or recessions in order to stimulate demand, increase economic activity, and promote growth. This can involve increasing government spending or cutting taxes, which puts more money into consumers' and businesses' hands, encouraging spending and investment.