Fiscal policy that decreases the taxes and increases the government expenditure will cause decrease in recession.
Fiscal policy refers to the policy of the government in which government increases its spending and reduces the rate of taxes. There are two types of fiscal policy, that is expansionary and contradictory fiscal policy.
This is done to reduce the inflationary situation in the country. It will result in increase in the level of the income of the people.
Therefore, it can be concluded that a Fiscal strategy that reduces taxes while increasing government spending will cause the recession to end.
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