How might the government react to a downturn in the economy?

2 answers:

7 0

An economic downturn suggest the rate ofeconomic growth is slowing down and possibly entering into recession. A downturn is part of theeconomic cycle (sometimes referred to as trade cycle or business cycle). The government react to a downturn in the economy by might take steps to stimulate the economy.

Vikki [24]3 years ago

4 0

The correct answer is: "One posible intervention could be an expansionary fiscal policy".

An economic downturn is a period of recession and low economic growth, or even negative growth figures, that usually comes together with high unemployment rates.

In order to boost the economy and the aggregate demand levels, the goverment can use the fiscal policy, more specifically it needs to use the expansionary version. It consists on increasing public spending for example, to create job positions for the unemployed, so that these can start earning an income and demanding goods and services themselves, therefore increasing aggregate demand levels and total output and, therefore, generating economic growth.

You might be interested in

Find out the goods that India Historically exported and carry out research and find out whether these goods are still exported.

prohojiy [21]

Petroleum, Jewelry, Packaged Medical Treatments, Rice, and Cars.

The oldest of these exports are Petroleum and Rice. They are still exported. You may see Jasmine Rice in grocery stores. That is exported from India.

3 0

3 years ago

What important precedent was established in the decision delivered by Chief Justice Marshall in McCulloch v. Maryland? A. This c

Lady bird [3.3K]

A.This case allowed for a broad interpretation of the powers of the federal government.

4 0

3 years ago

Read 2 more answers

Which of the following is not a power of the president

Yakvenalex [24]

The following is not a power of the president
1)Restructure the economy
2)Use heat vision
3)Start new wars or end old ones
etc
I hope this is correct and helpful

7 0

3 years ago

A dwarf planet is a small, rocky object that orbits the Sun and is usually found in a belt between the orbits of Mars and Jupite

LuckyWell [14K]

Answer:

The correct answer for your question is option (C)-Round object that orbit the Sun but lacks the ability to clear the neighborhood around its orbit.

Pluto and Neptune are the two celestial bodies in our solar system shares their orbit with the Kuiper belt particles.

Here in this case, Pluto was ejected from the planet list and termed as dwarf planet. However, Neptune is still considered as planet even though it crosses the orbit of Pluto just because of its mass.

Neptune is 800 times massive than Pluto.

Explanation:

6 0

3 years ago

Read 2 more answers

The value-creating retail activity that is particularly important to consumers with small living quarters who cannot store a lar

sineoko [7]

Answer:

Holding inventory

Explanation:

The value-creating retail activity that is particularly important to consumers with small living quarters who cannot store a large quantity of products is holding inventory.

3 0

3 years ago