Question

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

Answer 1

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.