What was one criticism of fiscal policy during the Great Recession?
Show answer and explanation
Correct answer: Critics said it led to large and long-lasting government deficits
Critics argued that stimulus spending significantly increased government deficits. They were concerned about long-term fiscal sustainability.
Keep practicing
More Great Recession of 2008 questions
- Which institution played a key role in implementing fiscal policy during the recession?
- What was the primary goal of tax cuts in the ARRA?
- What effect did the Great Recession have on global economies?
- Which fiscal policy tool directly creates jobs during a recession?
- What happened to consumer confidence during the Great Recession?
- Which policy approach involves reducing taxes and increasing spending to stimulate growth?