QuestionAugust 11, 2025

The government cuts business and personal income taxes and increases its own spending. contractionary expansionary

The government cuts business and personal income taxes and increases its own spending. contractionary expansionary
The government cuts business and personal income taxes and increases its own spending.
contractionary
expansionary

Solution
4.5(242 votes)

Answer

expansionary Explanation 1. Identify the fiscal policy type Cutting taxes and increasing government spending are actions that aim to boost economic activity. 2. Determine the policy effect These actions increase aggregate demand, leading to economic expansion.

Explanation

1. Identify the fiscal policy type<br /> Cutting taxes and increasing government spending are actions that aim to boost economic activity.<br /><br />2. Determine the policy effect<br /> These actions increase aggregate demand, leading to economic expansion.
Click to rate:

Similar Questions