Question

(1) By early 2008 the U.S. economy was in a significant downturn. The unemployment rate began to

increase and home prices began to fall. Congress passed a stimulus package that gave tax rebates to virtually
every person who paid taxes in 2007. Explain what economic principles best deseribe this Congressional
package?

Answer 1

The economic principle governing the congressional package is known as economic stimuli.

Step-by-step explanation:

The phenomenon of Economic stimuli is described as a change in economic or fiscal policy to enable economic growth in an economic slump. Some of the other activities may include dropping interest rate or quantitative easing.