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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.
When would the government most likely increase its spending?
When unemployment has increased
What would most likely decrease the supply of oranges?
a government subsidy
How would the us government most likely react to a boom in the economy?
Increase government spending in order to stimulate the economy
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
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 an increase in government purchases be an appropriate countercyclical fiscal policy?
A decrease in government spending and increase in taxes.
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
What would most likely decrease the supply of oranges?
a government subsidy
How would the us government most likely react to a boom in the economy?
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
Would government increase or decrease taxes to increase consumer and business spending?
To stimulate consumer and business spending, a government might decrease taxes, as this would increase disposable income for consumers and improve cash flow for businesses. Lower taxes can encourage spending and investment, leading to economic growth. Conversely, increasing taxes could limit spending power, potentially stifling economic activity. Ultimately, the decision depends on the government’s broader economic goals and the current economic context.
Under what circumstances would the government most likely lower taxes?
Consumer spending has decreased recently.
How would a government most likely respond to a slowdown in the economy?
Lowering taxes in order to stimulate spending
