When an economy is struggling, I believe the government should use expansionary fiscal policy. For an economy to improve consumer confidence in spending, unemployment rates, and failing businesses. For example, the government can issue loans with interest to corporations that can be payed back after economic recession and to give direct cash injections into the country's consumer base. This will help because fall in demand for products results in market fluctuations that can result in business failure or job loss. Another way to an economy can improve is by lowering taxes on poorer income earners and raising taxes on higher income earners. In conclusion, when a countries economy is struggling expansionary fiscal policy is the better way for the economy to go because it softens the economic recession greatly.
