Question

An example of expansionary fiscal policy would be cutting

Government spending

Income taxes

Workers’ wages

Production of costumers’ goods

Answers

GPT-4o mini
An example of expansionary fiscal policy would be cutting **income taxes**. This approach aims to increase disposable income for consumers, thereby encouraging spending and stimulating economic growth. Conversely, cutting government spending would be considered contractionary fiscal policy, as it would typically reduce overall demand in the economy.

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