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Q: Increasing government spending involves which type of economic policy?
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Decreasing government spending involves which type of economic policy?

suppli side economic


How can fiscal policy be used to stimulate Australia's economic activity?

fiscal policy can be used to stimulate economic activity by increasing spending. this is done by reducing taxes and increasing government spending to increase supply and demand which has a flow on effect for individual spending.


What are the two parts of fiscal policy?

Fiscal policy is a way in which the government can attempt to influence economic activity through spending and taxation. By either increasing spending or decreasing taxes, the government is often attempting to stimulate economic activity during times of recession. By decreasing spending or increasing taxes, the government is trying to slow down economic activity during times of inflation.


What influences government spending?

the macroeconomic objectives being pursued by the government will greatly influence government spending . a government aiming to reduce employment and promote economic growth is likely to pursue an expansionary fiscal policy , thus increasing government spending where as a government aiming to control inflation is likely to follow a contractions policy thus reducing its spending.


How can recent government spending be best described?

Constantly increasing


Which action has an expansionary effect on the economy?

Increasing government spending


What is the appropriate measure of government s involvement in economic activity?

it is the share of government spending in total spending in the economy


Why was there an economic plunge in 1937?

government spending was cut .


What makes increased government spending an effective tool for increasing demand?

By increasing government spending, you increase the demand for certain products because the government is looking to buy those products. The government can act as a consumer, and when a consumer spends more, the demand for goods and services is increased.


What does fiscal policy involve in?

Fiscal policy involves the Government changing the levels of Taxation and Govt Spending in order to influence Aggregate Demand (AD) and therefore the level of economic activity.


What was one reason for the economic plunge of 1937?

government spending was cut


One reason for the economic plunge of 1937 was that?

Government spending was cut.