Economics · Fiscal Policy

During an economic slowdown, if the government decides to increase public spending on rural employment programmes and reduce indirect taxes to boost aggregate demand, these stabilization measures are categorized under which type of policy? 1. Contractionary Fiscal Policy 2. Expansionary Fiscal Policy 3. Neutral Fiscal Policy

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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3Only 2✓
4Only 1

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