What are the 3 enomic stancesthat a government may have

1 answer:

4 0

Three Economic Stances a government may have:

1. Neutral fiscal policy is usually undertaken when an economy is in equilibrium. The budget is balanced, meaning the government is taking in as much revenue as it is spending.

2. Expansionary fiscal policy involves government spending exceeding tax revenue, and is usually undertaken during recessions.

3. Contractionary fiscal policy occurs when government spending is lower than tax revenue, and is usually undertaken to pay down government debt.

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