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. When unemployment has decreased

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How would the government most likely respond to decrease in consumer spending?

Lower taxes to make it easier for consumers and business to spend money.


An example of contractionary fiscal policy would be?

A decrease in government spending and increase in taxes


When would an increase in government purchases be an appropriate countercyclical fiscal policy?

A decrease in government spending and increase in taxes.


Which fiscal policy strategy would the federal government most likely use to stablize the economy?

The fiscal policy strategy that the Federal government would most likely use to stabilize the economy during times of inflation is to raise taxes. However, they could also decrease government spending.


When would the government most likely increase its spending?

When unemployment has increased


When would government most likely increase its spending?

When unemployment has increased


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a government subsidy


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Increase government spending in order to stimulate the economy


Which combination of fiscal policy actions would be most stimulative for an economy in a deep recession?

decrease taxes and increase government spending


Under what circumstances would the government most likely lower taxes?

Consumer spending has decreased recently.


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Lowering taxes in order to stimulate spending


What action would most likely increase the number of discoveries scientists can make?

Tougher government regulation and decreased funding would likely decrease the number of discoveries scientists could make.