Question

In: Economics

If the economy is in a recession, appropriate policies to pursue may include: Group of answer...

If the economy is in a recession, appropriate policies to pursue may include:

Group of answer choices

investment in technology that shifts the AS curve to the right.

an income tax cut that shifts the AD curve to the right.

a reduction in exports

an reduction in government spending that shifts the AD curve to the right.

Solutions

Expert Solution

Option 2

During recession the demand for goods would be less, so in order to increase the demand for goods, the disposable income needs to be increased through tax cuts.

Rahul Sunny answered 2 years ago
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