Question

8. How can the government stimulate the economy during a recession?

Answer 1

Answer:

Governments may use fiscal policy—additional government spending or tax cuts—to stimulate the economy during a recession. A fiscal multiplier is an estimate of the increased output caused by a given increase in government pending or reduction in taxes.

Explanation:

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Answer 2

During the recession, the government can stimulate the economy through increased spending or there can be tax cuts.

What is a recession?

A recession simply means a business cycle contraction when there is a general decline in economic activity.

The government can stimulate the economy during a recession by using fiscal policy like additional government spending or tax cuts. This will bring about an improvement in the economy.

Learn more about recession on:

https://brainly.com/question/1417711