Question

G

8
by requiring firms to maintain production
by eliminating all tax breaks
9 10
During a recession, what is one way governments try to encourage growth?
Oby increasing unemployment benefits
Oby stopping government spending

Answer 1

During a recession, governments try to encourage growth by increasing government spending, implementing tax incentives for businesses, and using monetary policy tools.

Step-by-step explanation:

During a recession, one way governments try to encourage growth is by

• increasing government spending to stimulate the economy. This can be done through infrastructure projects, such as building roads and bridges, or investing in education and healthcare.
• implementing tax incentives or breaks for businesses. By reducing the tax burden on companies, governments aim to incentivize them to invest, expand production, and hire more employees.
• using monetary policy tools, such as reducing interest rates, to encourage borrowing and investment in the private sector.

Learn more about government efforts to encourage growth during recessions