answersLogoWhite

0

1) Reduce taxes.

2) Increase government spending.

3) Make 1 or 2 most efficient/cost-effective.

User Avatar

Wiki User

14y ago

What else can I help you with?

Continue Learning about Economics

What fiscal policy is designed to stimulate economic growth?

sponsorship of high-tech industries


What is a fiscal policy designed to stimulate economic growth?

sponsorship of high-tech industries


What are the two parts of fiscal policy?

Fiscal policy is a way in which the government can attempt to influence economic activity through spending and taxation. By either increasing spending or decreasing taxes, the government is often attempting to stimulate economic activity during times of recession. By decreasing spending or increasing taxes, the government is trying to slow down economic activity during times of inflation.


Ask us of the following is an example of the use of fiscal policy by the U.S. government?

An example of fiscal policy by the U.S. government is the implementation of a major tax cut to stimulate consumer spending and boost economic growth. This action involves adjusting government spending and tax policies to influence overall economic activity. Another example is increasing government spending on infrastructure projects to create jobs and enhance economic productivity.


Is decrease taxes an appropriate fiscal policy response?

Decreasing taxes can be an appropriate fiscal policy response, particularly during periods of economic downturn or recession, as it can stimulate consumer spending and investment by increasing disposable income. However, the effectiveness of this approach depends on the current economic context, such as the level of public debt and the existing fiscal deficit. If the economy is already strong, tax cuts may lead to budget shortfalls and exacerbate income inequality. Ultimately, the appropriateness of tax cuts as a fiscal policy tool should be evaluated based on specific economic conditions and goals.

Related Questions

What fiscal policy is designed to stimulate economic growth?

sponsorship of high-tech industries


What is a fiscal policy designed to stimulate economic growth?

sponsorship of high-tech industries


How can fiscal policy be used to stimulate Australia's economic activity?

fiscal policy can be used to stimulate economic activity by increasing spending. this is done by reducing taxes and increasing government spending to increase supply and demand which has a flow on effect for individual spending.


What are the two parts of fiscal policy?

Fiscal policy is a way in which the government can attempt to influence economic activity through spending and taxation. By either increasing spending or decreasing taxes, the government is often attempting to stimulate economic activity during times of recession. By decreasing spending or increasing taxes, the government is trying to slow down economic activity during times of inflation.


What is the meaning of fiscal autonomy?

Fiscal Autonomy in Scotland: The case for change and options for reform


Ask us of the following is an example of the use of fiscal policy by the U.S. government?

An example of fiscal policy by the U.S. government is the implementation of a major tax cut to stimulate consumer spending and boost economic growth. This action involves adjusting government spending and tax policies to influence overall economic activity. Another example is increasing government spending on infrastructure projects to create jobs and enhance economic productivity.


When can the federal government affect fiscal policy?

The federal government can affect fiscal policy through its budgetary decisions, including changes in government spending and taxation. This typically occurs during the annual budget process, when Congress and the President negotiate and approve spending bills and tax legislation. Additionally, fiscal policy can be adjusted in response to economic conditions, such as during a recession or economic downturn, to stimulate growth or control inflation. Ultimately, these decisions are influenced by economic indicators and policy goals aimed at stabilizing the economy.


What is the definition of economic fluctuations?

regressions and expansionsA sequence of economic activity typically characterized by recession, fiscal recovery, growth, and fiscal decline.


What has the author S S Kothari written?

S. S. Kothari has written: 'New fiscal and economic strategies for growth in developing countries' -- subject(s): Economic conditions, Fiscal policy 'Reform of fiscal and economic policies for growth in developing countries with special reference to India' -- subject(s): Economic policy, Public Finance, Fiscal policy


How can policymakers effectively address the challenges posed by a deflationary recession to stimulate economic growth and prevent prolonged periods of declining prices and economic activity?

Policymakers can address deflationary recessions by implementing expansionary monetary and fiscal policies. This includes lowering interest rates, increasing government spending, and providing stimulus packages to boost consumer and business confidence. Additionally, policymakers can use unconventional measures such as quantitative easing to increase money supply and encourage borrowing and spending. By taking these actions, policymakers can stimulate economic growth and prevent prolonged periods of declining prices and economic activity.


When the Federal government uses taxation and spending actions to stimulate the economy it is conducting?

fiscal policy


When the federal governent uses taxation and spending actions to stimulate the economy it is conducting?

fiscal policy