Expansionary fiscal policy is used to

A) combat inflation.
B) combat recessions.
C) encourage private saving.
D) make businesses more efficient.

Answer: B) combat recessions.

Economics

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If the government increases unemployment benefits, then the equilibrium amount of employment ________ and potential GDP ________

A) increases; increases B) does not change; does not change C) increases; decreases D) decreases; decreases E) decreases; increases

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Increases in spending on education will lead to an increase in student performance.

A. True B. False C. Uncertain

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