Expansionary fiscal policy refers to policies aimed at increasing demand and thus output. This is done by expanding/increasing government expenditure, reducing taxes or doing a bit of both.
The period of the business cycle that most businesses make the greatest increase in spending is the expansion period. This is usually called the expansionary fiscal policy.
taxation
Fiscal usually relates to matters of financial stature. Fiscal could also relate to taxes and government issues. The use of the word fiscal can be combined in conjunction with fiscal cliff, fiscal year, fiscal deficit, fiscal policy and fiscal parish.
Government
Fiscal policy is used by governments to influence the level of aggregate demand in the economy, in an effort to achieve economic objectives of price stability, full employment and economic growth.
is a policy that have no demand
Expansionary fiscal policy is an increase in government spending or a reducing in net taxes which increase aggregate output/income (Y). +G or -T = +Y
Expansionary fiscal policy is so named because it is designed to expand real GDP.
increase gvt exp
expansionary fiscal policy position
when it is weak
cutting taxes
expansionary fiscal policy position
expansionary fiscal policy position
More public expenditure
Expansionary fiscal policy is meant to expand the economy by ending a recession earlier, stimulating buying and business success, and decreasing the unemployment rate. This policy is often paired with the lowering of interest rates.
It increases economic growth