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How would Fiscal Policy be used if our country was going into Recession?

How would Fiscal Policy be used if our country was going into Recession?


Top Answer

increase government... View the full answer

7 comments
  • an expansionary fiscal policy can be used if our country was going into recession. It involves an increase in government expenditure and a reduction in taxation. Lower taxes will increase consumers spending because they have more disposable income.
    • vaughlobe
    • Jul 19, 2016 at 6:05pm
  • same question just with infltion instead of recession
    • nbaker8m
    • Jul 19, 2016 at 6:06pm
  • a contractionary fiscal policy can be used if our country was going into inflation. It involves a decrease in government expenditure and an increase in taxation. this would reduce money supply in the economy
    • vaughlobe
    • Jul 19, 2016 at 6:07pm
  • How is our National (a.k.a. Public) Debt calculated
    • nbaker8m
    • Jul 19, 2016 at 6:09pm
  • The national debt is calculated by subtracting the nation's cumulative budget surpluses from the cumulative budget deficits
    • vaughlobe
    • Jul 19, 2016 at 6:11pm
  • What can be done to lower the Debt? why is this unlikely to happen?
    • nbaker8m
    • Jul 19, 2016 at 6:12pm
  • 1) Raise the retirement age. Raising the retirement age for Social Security would not only reduce the program's obligations, but would likely encourage people to work longer. And a larger work force means more taxable income and stronger overall economic growth. 2) Cap discretionary spending. To ensure that politicians make tough decisions in this area of the budget, we must have strong enforceable spending caps in place................................This is unlikely to happen due to bureaucracy
    • vaughlobe
    • Jul 19, 2016 at 6:16pm

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Other Answers

If our country was going into a recession fiscal policy would be used... View the full answer

2 comments
  • how about if our country was going into inflation
    • nbaker8m
    • Jul 19, 2016 at 6:05pm
  • You would do the oppose reduce the money supply and increase interest rates
    • nhlpensfan8193
    • Jul 19, 2016 at 6:06pm

A contractionary fiscal policy can be used if our country was going... View the full answer

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