Which of the following strategies is most effective in addressing a government budget deficit that has arisen primarily due to cyclical factors?

When a government faces a budget deficit mainly caused by cyclical factors, like a recession, one effective strategy is to increase government spending. This approach helps stimulate the economy by creating jobs and boosting demand for goods and services. For example, if the government invests in building new roads or schools, it can hire workers and pay for materials, which puts money into the hands of consumers. As people earn more, they spend more, which can help the economy grow and eventually increase tax revenues. This way, the government can address the deficit while also supporting economic recovery.