All categories

2 years ago

During a severe recession Congress passes legislation to cut taxes, this would be an example of a(n): g

Business

1 answer:

Doss [256]2 years ago

5 0

Answer:

expansionary fiscal policy.

Explanation:

Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.

A fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment.

Basically, an expansionary fiscal policy will cause the total increase in aggregate demand to be greater than the initial increase in aggregate demand due to the multiplier process.

Hence, if during a severe recession, Congress passes legislation to cut taxes, this would be an example of an expansionary fiscal policy.

According to the Keynesian theory, government spending or expenditures should be increased and taxes should be lowered when faced with a recession, in order to create employment and boost the buying power of consumers.

You might be interested in

. If Carissa Dalton has a $130,000 home insured for $100,000, based on the 80 percent coinsurance provision, how much would the

aev [14]

Answer:

$4,807.69

Explanation:

The first step is to calculate the requirement for coinsurance

= 80/100 × 130,000

= 0.8× 130,000

= 104,000

Therefore the amount in which the insurance person will pay can be calculated as follows

= 100,000/104,000 × 5000

= 0.96153×5000

= $4,807.69

7 0

2 years ago

When school districts are funded by local taxes only, the likelihood of disparities in funding goes up.

S_A_V [24]

I think the answer is false because many schools raise fundraisers to help pay for things. If this is the case the money for the school will be quite low

5 0

2 years ago

When the bicycle manufacturer trek determined that some consumers use bikes for green transportation whereas others use them for

PilotLPTM [1.2K]

The answer to the above question is the core customer value. <span>The core customer value comprises the basic problem-solving benefits that consumers seek in a product. Thank you for posting your question here at brainly. I hope the answer will help you. </span>

5 0

3 years ago

REI has a 100% satisfaction guarantee on its items. It allows customers to return products up to one year after purchase. This i

Vanyuwa [196]

Answer: risk

Explanation: 100% satisfaction guarantee is a statement that if a customer of a product (or service) is not satisfied with the item purchased, then the producer will offer a full refund back to the customer. In this case REI allows this option for a period of up to 1 year after the sale was made.

REI utilises this option in an effort to reduce costs attributed to risk. For customers, this is a powerful tool as they are allowed to try the product, while knowing that if they don't like it then they can return it for a full refund. For REI, it increases customer trust as it allows customers to believe that the product is worth the sales price. It also reduces risk as REI is able to test the product out to actual customers and get a feel for if they like it, and what can be improved if needed.

3 0

3 years ago

Hardy lumber has a capital structure that includes bonds, preferred stock, and common stock. which one of the following rights i

Vitek1552 [10]

The correct answer is B) Right to share in company profits prior to other shareholders

7 0

2 years ago