According to current fiscal policy theory, which of the following decisions would best help end a recession in the United States?

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The decision to have Congress decrease taxes and increase funding for road and bridge repairs aligns well with current fiscal policy theory aimed at combating recession. During a recession, economic activity typically slows, resulting in lower consumer spending and increased unemployment. By decreasing taxes, consumers are left with more disposable income, which can encourage spending and stimulate demand.

Simultaneously, increasing funding for infrastructure projects like road and bridge repairs provides a dual benefit. It not only creates jobs in the short term for construction and associated industries, but also improves the long-term productivity and efficiency of the economy. This combination of tax relief for consumers and targeted government spending can effectively boost economic activity, thereby working to mitigate the effects of a recession.

In contrast, other options, such as increasing taxes or cutting funding for unemployment, could further constrain consumer spending and increase economic hardship, which would not effectively address a recession.

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