Question
An example of expansionary fiscal policy would be cutting
Government spending
Income taxes
Workers’ wages
Production of costumers’ goods
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.