Question

The economy is experiencing negative GDP growth and high unemployment which fiscal policy action should the government Implement in an attempt to fix this problem

Answer 1

Expansionary Fiscal Policy

Step-by-step explanation:

When an economy is faced with high unemployment ,negative GDP growth then it is experiencing recession. The best fiscal policy action government can use to eradicate such problem and boost the economy is Expansionary Fiscal Policy.

This policy is the policy in which government reduce taxes and spend more money to some certain sectors needing an economic boosts. This will in turn put more money in the hands of the consumers so they will have more money to spend and this will aid the stimulation of the economy. The problem of recession will then be fixed so the economy will bounce back to a better one.

Answer 2

increase spending

Step-by-step explanation:

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