What fiscal policy would you use if there is high unemployment and GDP is down?

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2026-07-29 03:40

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In a situation of high unemployment and declining GDP, an expansionary fiscal policy would be appropriate. This could involve increasing government spending on infrastructure projects and social programs to stimulate job creation and economic activity. Additionally, cutting taxes could increase disposable income for households and businesses, encouraging consumer spending and investment. Together, these measures aim to boost demand and support economic recovery.

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