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What else can I help you with?
Why would a government choose to spend more money than it collects in taxes during a recession or a depression?
Spending increases demand and can encourage economic growth.
HOW Does the government typically change fiscal policy to try to improve the us economy during a recession?
Normally in a recession the government would want to raise the equilibrium level of income. This can be done in one of two ways: by increasing government spending or by decreasing taxes.
Is growth investing smart during a recession?
Proably not at this point and time. Doing any kidn of investing during this recession would not be recommended.
What would an economist who favors smaller government recommended during a recession and inflation?
An economist who favors smaller government during a recession and inflation would likely recommend reducing government spending and lowering taxes to stimulate private sector investment and consumption. They might argue that cutting spending would help reduce inflationary pressures in the long term, while tax reductions could provide immediate relief to individuals and businesses. Additionally, they may advocate for deregulation to encourage economic growth and efficiency. Overall, the focus would be on market-driven solutions rather than increased government intervention.
If the government were to operate under as strict balanced-budget rule what would it have to do in a recession Would that make the recession more or less severe?
it would make it more severe, since strict balanced budget refers to increase in taxes and reduce spending by the governmnet...
Which combination of fiscal policy actions would be most stimulative for an economy in a deep recession?
decrease taxes and increase government spending
Should you increase taxes or cut taxes?
This is a politically charged subject, so this is highly debatable. But, I will tell you it is generally more helpful to cut taxes in a recession and raise taxes in an inflationary period.The reason you want to cut taxes in a recession(or just stick with an expansionary fiscal policy) is to increase Aggregate Demand is gain a state of growth.You would want to raise taxes in an inflationary period(or just have a contradictory fiscal policy) is to decrease inflation which is probably caused by too much demand. China is a great example!
How would you use annexation in a sentence?
The city's annexation of our neighborhood would raise our taxes while reducing the maintenance of our roads.
What kind of consumer behavior would most likely be seen during a recession?
reduced spending
What can push an economy in recession into a depression?
Greedy politicians raising taxes on corporations to pay for their socialist agendas. The increase in taxes would make corporations less profitable and force many to lay off workers, adding to unemployment, and eventually reaching a depression.
Which phases of the business cycle would be most closely associated with an economic contraction?
Recession
Will the recession be extreme in 2009?
No. The recession is expected to stabilize during 2009 and is expected to end by the end of 2009. The steps taken by the governments world over would start showing effect and the economies will recover. note: This is only my opinion.
