Web Analytics

Questions › Economics

Economics Asked by a SnapAndSolve user · about 2 hours ago

When the government boosts demand by increasing spending or lowering taxes to help pull the economy out of...

When the government boosts demand by increasing spending or lowering taxes to help pull the economy out of a downturn, it is carrying out __________.
Select answer...
automatic stabilizers
contractionary fiscal policy
expansionary fiscal policy
When policymakers try to slow rapid price increases by reducing government spending or raising taxes, they are implementing __________.
Select answer...
When built-in programs automatically provide more support during recessions and scale back as conditions improve, even without new legislation, they operate as __________.
Select answer...

Answer

When the government boosts demand by increasing spending or lowering taxes to help pull the economy out of a downturn, it is carrying out expansionary fiscal policy.

When policymakers try to slow rapid price increases by reducing government spending or raising taxes, they are implementing contractionary fiscal policy.

When built-in programs automatically provide more support during recessions and scale back as conditions improve, even without new legislation, they operate as automatic stabilizers.

Have a similar question?

Snap a photo of your homework and get a step-by-step answer in seconds. You can ask follow-up questions until it makes sense.

Solve my question free Economics help Find a economics tutor

More economics questions