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Select the correct answer from each drop-down menu. How did the government help the economy? The economy of country Y has experienced increased unemployment and reduced GDP for six months. The government therefore decides to implement fiscal policy that increases and reduces.

Respuesta :

The fiscal policy action taken by the government would increase money supply and reduce tax rate.

What is fiscal policy?

Fiscal policy are actions taken by the government to stimulate the economy in order to achieve full employment and price stability.

Fiscal policies can either be expansionary or contractionary. Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.

Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing spending or increasing taxes

To learn more about fiscal policies, please check: https://brainly.com/question/25716528

elhooligan04

Answer:

The answer would be: The government therefor decides to implement fiscal policy that increases Government spending and reduces Taxes.

this answer was correct for me on plato. hope this helped.

Explanation:

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