Question

How did the federal budget behave during the 2008-2009 recession?

A) Economic analysis
B) Fiscal policy evaluation
C) Government spending trends
D) Budgetary adjustments

Answer 1

During the 2008-2009 recession, the federal budget used a combination of tax cuts and increases in government spending as part of an expansionary fiscal policy to stimulate the economy. This policy was passed by the Obama administration and Congress.

Step-by-step explanation:

During the 2008-2009 recession, the federal budget behaved in a way that involved a combination of tax cuts and increases in government spending. This was done as part of an expansionary fiscal policy to stimulate the economy and combat the effects of the recession. The Obama administration and Congress passed an $830 billion policy in 2009 that included both tax cuts and government spending increases. However, the stimulus provided by the federal government was partially offset by spending cuts made by state and local governments that were also affected by the recession.