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What kind of fiscal policy would work fastest during a recession and would be effective at growing the economy, as opposed to working more slowly during a recession

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ayfat23

The kind of policy that would be very effective during recession, and for the economy growth is Expansionary fiscal policy.

  • Expansionary fiscal policy can be regarded as one that would bring an increase to the level of aggregate demand.

  • This can take place through increases in government spending as well as reductions in taxes and this will be good to tackle the recession.

We can conclude that Expansionary fiscal policy is right.

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