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Question about Fiscal Policy

Subject Economics

Economics

Source Originais Teachy

Originais Teachy

Topic Fiscal Policy

Fiscal Policy

Difficulty Easy

Easy

(Originais Teachy 2023) - Question Easy of Economics

Consider an economy that is facing high unemployment rates. The government decides to employ fiscal policy to address this issue. What would be the most likely action the government would take to influence the economy and reduce unemployment, and what would be the expected outcome of such an action?

The government would most likely reduce government spending on public projects such as infrastructure, education, and healthcare. The expected outcome of this action would be an increase in the unemployment rate.

The government would most likely increase taxes. The expected outcome of this action would be a decrease in the unemployment rate.

The government would most likely maintain the current level of government spending and taxation. The expected outcome of this action would be no change in the unemployment rate.

The most likely action the government would take to influence the economy and reduce unemployment is to increase government spending on public projects such as infrastructure, education, and healthcare. The expected outcome of this action would be a decrease in the unemployment rate.

The government would most likely decrease government spending and increase taxes. The expected outcome of this action would be an increase in the unemployment rate.

Answer sheet:

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