8
QuizLong Text

Government and the Economy

Question 8 • FL-2106010-M/J Civics B

What actions can the government take if it has an expansionary fiscal policy? How do these actions help to increase employment?

Answer

Answer:

The government can increase its spending, lower taxes, or do both. These actions increase demand for goods and services; businesses may respond by producing more and hiring more workers, which helps increase employment.

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