Final answer:
During a recession, governments commonly use expansionary fiscal policy, such as increasing unemployment benefits and government spending, to stimulate economic growth and reduce unemployment.
Step-by-step explanation:
During a recession, governments employ various strategies to encourage growth. One common strategy is increasing government spending on projects like infrastructure development, which stimulates economic activity and creates jobs. Another strategy is lowering taxes to give individuals and businesses more money to spend and invest. Additionally, governments may also implement expansionary monetary policy by lowering interest rates and increasing the money supply to stimulate borrowing and investment.
During a recession, governments often employ strategies to encourage economic growth and reduce unemployment. One common approach is an expansionary fiscal policy, which can include measures such as increasing unemployment benefits and increasing government spending on projects like road building to stimulate economic activity. These actions are designed to increase aggregate demand, which should help shift the economy out of recession and towards full employment. Conversely, stopping government spending, requiring firms to maintain production, or eliminating tax breaks are not typical strategies used to fight a recession.