Question

How do the instances when expansionary fiscal policy should be used compare with those for contractionary fiscal policy? (1 point)
Expansionary fiscal policy should be used to increase the unemployment rate and contractionary fiscal policy should be used when economic growth is too fast.
Expansionary fiscal policy should be used during recessions to help build the economy and contractionary fiscal policy should be used when there is high inflation.
Expansionary fiscal policy should be used to combat high inflation and contractionary fiscal policy should be used to increase government revenue.
Expansionary fiscal policy should be used to increase government revenue and contractionary fiscal policy should be used to increase consumer spending.

Answer 1

Expansionary fiscal policy should be used during recessions to help build the economy and contractionary fiscal policy should be used when there is high inflation.