Stimulate aggregate demand and boost economic

Reference no: EM133714307

Question: I would recommend implementing expansionary fiscal policy during a recession. This would involve increasing government spending and reducing taxes to stimulate aggregate demand and boost economic activity. However, by injecting money into the economy through government spending, it can create a multiplier effect, where each dollar spent generates more than one dollar in economic activity. This approach aligns with Keynesian economics, which emphasizes the role of government intervention in stabilizing the economy during downturns.

Reference no: EM133714307

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Stimulate aggregate demand and boost economic : Create a multiplier effect, where each dollar spent generates more than one dollar in economic activity. This approach aligns with Keynesian economics

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