Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Increasing taxes
B
Decreasing government spending
C
Increasing government spending
D
Reducing public investment
Understanding the Answer
Let's break down why this is correct
Answer
During a recession, the government can use fiscal policy to help stimulate economic growth by increasing public spending or cutting taxes. When the government spends more money on projects like building roads or schools, it creates jobs and puts money into people's hands. This extra money allows people to buy more goods and services, which can help businesses grow and hire more workers. For example, if the government decides to build a new bridge, workers will be needed for the construction, and once the bridge is built, it makes travel easier for everyone, boosting local businesses. Overall, these actions help to kickstart the economy by encouraging spending and investment.
Detailed Explanation
When the government spends more money, it creates jobs and helps businesses. Other options are incorrect because Some think that raising taxes helps pay for services; Many believe cutting spending saves money.
Key Concepts
recession
economic stimulus
Topic
Recession and Fiscal Policy Actions
Difficulty
medium level question
Cognitive Level
understand
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