To combat a recession, the government can implement a fiscal policy action by increasing __________, which aims to shift aggregate demand to the right.

To combat a recession, the government can implement a fiscal policy action by increasing government spending. When the government spends more money on things like building roads, schools, or providing services, it puts more money into the economy. This extra spending helps businesses grow and creates jobs, which encourages people to spend more money as well. For example, if the government decides to build a new highway, it not only creates jobs for construction workers but also helps local businesses by making it easier for people to travel and shop. This increase in spending shifts the overall demand in the economy to the right, helping to stimulate growth and reduce the effects of the recession.