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Explain the strategy behind government policies to
Explain the strategy behind government policies to

... a recession and (2) what kind of tax should be cut or what government program should have its budget increased. To make matters worse, once the law is passed, it typically doesn’t affect spending decisions until at least the following year. The US and other governments have a poor track record of ge ...
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Recession

In economics, a recession is a business cycle contraction. It is a general slowdown in economic activity. Macroeconomic indicators such as GDP (gross domestic product), investment spending, capacity utilization, household income, business profits, and inflation fall, while bankruptcies and the unemployment rate rise.Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various events, such as a financial crisis, an external trade shock, an adverse supply shock or the bursting of an economic bubble. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply, increasing government spending and decreasing taxation.
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