Answer :
One way the government can use fiscal policy to fight a recession is to cut taxes.
What is recession?
An economic downturn that is significant, pervasive, and long-lasting is called a recession. Though more sophisticated formulas are also used, a general rule of thumb is that two consecutive quarters of negative gross domestic product (GDP) growth indicate a recession.
In addition to other indicators, economists at the National Bureau of Economic Research (NBER) look at nonfarm payrolls, industrial production, and retail sales to measure recessions, which is a far more comprehensive approach than the more straightforward (though less precise) two quarters of negative GDP measure.
The NBER does note, however, that "there is no fixed rule about what measures contribute information to the process or how they are weighted in our decisions."
Learn more about recessions
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