Expansionary fiscal policy used during economic downturns inevitably leads to a budget –. suppose the government responds to the downturn by increasing government spending by $250 billion, but keeps tax rates the same. in this scenario, the – will rise by – $250 billion. in a recession, – falls and – rises, which means tax revenues will – even if tax rates do not change.

Expansionary fiscal policy used during economic downturns inevitably leads to a budget deficit. Suppose the government responds to the downturn by increasing government spending by $250 billion, but keeps tax rates the same. In this scenario, the deficit will rise by more than $250 billion. In a recession, income falls and unemployment rises, which means tax revenues will fall even if tax rates do not change.

Explanation:

the properties of a free-market system that determine what the out comes will be.

the renaissance was a historical movement that started in italy but spread through europe, that symbolized the end of the middle age and the beginning of the modern age.

this period in time was characterized by innovation, creativity, imagination and restoration of principles and moral values. in this time, europe classic past history was revisited and put up for debate. it was a social, political, artistic and literary movement that began as an effort to emulate the societies of classic ancient greece and rome.