Fiscal policy is the manipulation of taxation and government spending by the government to affect the economy . Expansionary fiscal policy is when the government what to increase aggregate demand by decrease taxation.Pakistan does not use expantionary fiscal policy because Pakistan have highly economic growth and macroeconomic stability but also some poverty reduction(increase in standard of living)
is a policy that have no demand
Expansionary fiscal policy is so named because it is designed to expand real GDP.
increase gvt exp
when it is weak
expansionary fiscal policy position
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.
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.