Answer to Question #228925 in Microeconomics for Cebo

Question

Choose any one of the tools from Question

4.1.1 and elaborate on the application of this tool in your country.

Answer 1

complete question

solution

4.11)

Main tools of fiscal policy are taxes and government spending.can Government incrase its spending and reduce taxes during recession in the economy

4.12

In my country,with increase in government spending on construction of opf infrastructure like roads will increase employment which in turn will increase income for the consumers  , thereby increasing aggregate demand.This can lead to higher growth in the short term.