Ask Question
16 August, 21:52

Public choice analysis indicates that it will be politically more attractive to

+4
Answers (1)
  1. 16 August, 23:57
    0
    Answer: put into practise expansionary fiscal policy during a recession than to make restrictive fiscal policy during an economic expansion

    Explanation: Recession occurs when there is a general decline in economic activities usually as a result of less spending. Economic expansion is thr opposite, which sees increase in level and growth of economic activities.

    Expansionary fiscal policy is a policy which involves decreasing taxes and/or increasing government expenditures in order to fight recession. Reducing taxes translates to households having more income to spend which is why it is a good policy to reduce recessionary pressures.

    Restrictive fiscal policy on the other hand restricts the growth of an economy by increasing taxes and/or reducing government expenitures so that households have less spending income; this policy is ideal during economic expansion to stabilize the economy from getting out of hand.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Public choice analysis indicates that it will be politically more attractive to ...” in 📙 Social Studies if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers