Question

The U.S. Congress passed a stimulus bill in February 2009 to help remove the economy from a recessionary gap. This is an example of the use of

Answer 1

Answer: expansionary fiscal policy

Step-by-step explanation:

Expansionary fiscal policy is used to

boost the aggregate demand, and this will lead to increase in output and also employment.

Expansionary fiscal policy methods include, transfer payments, reduction in taxes, rebates, increase in government spending.

The U.S. Congress passed a stimulus bill in February 2009 to help remove the economy from a recessionary gap. This is an example of the use of expansionary fiscal policy.