Fiscal Policy Is Well-Suited to Counteract a Recession or Depression

question 71

Multiple Choice

Fiscal policy is well-suited to counteract a recession or depression when

• A) unemployment is low.
• B) taxes are high.
• C) a real negative shock occurs.
• D) resources are under utilized.

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Definitions:

Married Filing Joint

A tax filing status used by married couples who combine their income, exemptions, deductions, and credits on one tax return.

Lifetime Learning Credit

The Lifetime Learning Credit is a tax credit available in the United States for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution, intended to promote post-secondary education.

Per Taxpayer

Refers to allowances, deductions, or credits applied on an individual basis for each taxpayer.

Child Tax Credit

A tax credit offered to eligible taxpayers for each qualifying dependent child, intended to help offset the cost of raising children.