National fiscal policy response to the late 2000s recession

When there is an economic recession, like the one that happened in the late 2000s, the government can respond with something called a national fiscal policy. This means that the government will adjust how much money it has and spends in order to help the economy get out of an economic recession. For example, the government can lower taxes and increase spending. Lowering taxes means that people have more money to spend on things they need, and when people spend more, it helps businesses earn more money and create more jobs. Increasing spending means that the government will invest in projects or programs to help people get back to work. This can include making sure that people have access to healthcare and education. All of these efforts help the economy recover from recessions and get back to normal.