Question

or increasing government spending. the goal is to put more money into the economy so people buy more goods and services. when people spend more, businesses may hire more workers.
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4 what are two things the government might do during expansionary fiscal policy?
true or false
5 expansionary fiscal policy is used when the economy is struggling.
6 cutting taxes is a type of expansionary fiscal policy.
section 3: contractionary fiscal policy
sometimes the economy grows too fast. when that happens, prices can rise quickly—a problem called inflation. to slow things down, the government may use contractionary fiscal policy. this can involve raising taxes or reducing government spending. the goal is to cool off the economy and keep prices stable.
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7 why might the government

Explanation:

Question 4:

Expansionary fiscal policy aims to boost the economy. From the text, it mentions putting more money into the economy. So, two actions are cutting taxes (to let people have more money to spend) and increasing government spending (to inject money into the economy directly).

Expansionary fiscal policy is used to stimulate the economy. When the economy is struggling (like in a recession or slow growth), this policy is applied to increase spending and hiring. So the statement "Expansionary fiscal policy is used when the economy is struggling" is true.

The text says expansionary fiscal policy can involve cutting taxes (to put more money into the economy as people have more disposable income). So "Cutting taxes is a type of expansionary fiscal policy" is true.

Answer:

Two things the government might do during expansionary fiscal policy are: 1. Cut taxes (so people have more money to spend on goods and services). 2. Increase government spending (to put more money into the economy).

Question 5: