Respuesta :
Answer: b. reduce taxes and cut back on some social programs
Explanation:
When the Economy is not doing well, Social programs are usually targeted as they usually take a lot of money from the Government's coffers.
It is also a generally held view that reducing taxes as a Fiscal policy can help stimulate the Economy by leaving the public with more funds to invest in and spend on the Economy.
The Government of Ruritania is therefore most likely to combine reducing Social programs as well as reducing taxes. This will have the effect of leaving the Government with some money as it loses revenue from taxes whilst also enabling the public to have more money to invest and to spend which will then lead to Economic growth.
Here the government reduce taxes and cut back on some social programs
For addressing the given problem, the government should do:
At the time when the Economy is not doing well, Social programs are should be considered since it take a lot of money from the Government's coffers. Also, the taxes are reduced since Fiscal policy can help stimulate the economy by leaving the public with additional funds to invest in and spend on the Economy.
Learn more about an economy here: https://brainly.com/question/24561404
