Question

The economy is in a recession. a congresswoman suggests increasing spending to stimulate aggregate demand but also at the same time raising taxes to pay for the increased spending. her suggestion to combine higher government expenditures with higher taxes is:

Answer 1

what up cu

Step-by-step explanation:

Answer 2

Her suggestion to combine higher government expenditure with higher taxes is THE WORST POSSIBLE APPROACH. This is because, the two moves are contradictory. If the government increase its expenditure and then increase tax, the increased tax will cancel out the effect of increased government expenditure and the recession will remain.