Question

How do the instances when expansionary fiscal policy should be used compare with those for contractionary fiscal policy? (1 point)

Expansionary fiscal policy should be used to increase government revenue and contractionary fiscal policy should be used to increase consumer spending.

Expansionary fiscal policy should be used to combat high inflation and contractionary fiscal policy should be used to increase government revenue.

Expansionary fiscal policy should be used to increase the unemployment rate and contractionary fiscal policy should be used when economic growth is too fast.

Expansionary fiscal policy should be used during recessions to help build the O economy and contractionary fiscal policy should be used when there is high inflation.

Answer 1

[AI-generated answer — Bot GPT 3.5]

None of these statements accurately compare when expansionary and contractionary fiscal policies should be used.

Expansionary fiscal policy should be used during times of economic downturn or recession to stimulate economic growth, increase aggregate demand, and reduce unemployment. On the other hand, contractionary fiscal policy should be used during times of high inflation or when the economy is overheating to reduce aggregate demand and control inflation.

In summary, expansionary fiscal policy should be used during recessions, while contractionary fiscal policy should be used during periods of high inflation or economic overheating.