Question

How does the government typically change fiscal policy to try to improve the u.s. economy during a recession?

Answer 1

By lowering taxes on business and individuals. APEX.

Answer 2

Fiscal policy allows the government to adjust taxes and government spending during times of recession and in times when the economy is doing really well. During a recession the government will often lower taxes and interest rates and increase government spending in order to boost the economy. When the economy is going well, tax rates and interest rates will be increased and government spending will be slashed in order to create a surplus for harder times when the government needs to spend more.