Increase Government Spending to Fight Recessions
Introduction Government spending as a recession recovery tool has been the subject of debate numerous times. To date, there is no definitive proof of its success or failure of its application. An active fiscal or a monetary policy is the sum total of the actions taken as a reaction to the current economic conditions; the government chooses to use a specific policy to deal with something in the economy (Mankiw, 2001).
Government spending as a method for lessening recession is a tool that has been proposed and even applied by many governments when they are experiencing a recession. This ...