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In Economics / Senior High School | 2025-05-21

Which sector often boosts spending during recessions?

Asked by JamesBenidict4035

Answer (1)

During a recession, when private businesses and households cut back spending, the government can increase its spending to stimulate the economy. For example, the Philippine government often launches infrastructure projects to keep people employed and money circulating. This creates jobs for construction workers, engineers, and suppliers, helping prevent a deeper recession.

Answered by Sefton | 2025-05-22