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Expansionary fiscal policy, which involves increased government spending or tax cuts, typically boosts economic activity by increasing aggregate demand. This can lead to higher GDP growth as businesses respond to increased consumer spending. Additionally, it may reduce unemployment rates as firms hire more workers to meet rising demand. However, it can also lead to higher inflation if the economy is already operating near full capacity.
What else can I help you with?
Expansionary fiscal policy?
is a policy that have no demand
Does Pakistan follow expansionary fiscal policy?
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)
Expansionary fiscal policy is so named because it?
Expansionary fiscal policy is so named because it is designed to expand real GDP.
What is the purpose of expansionary fiscal policy?
increase gvt exp
When does the government assume an expansionary fiscal policy position?
when it is weak
Expansionary fiscal policy?
is a policy that have no demand
Does Pakistan follow expansionary fiscal policy?
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)
What is expansionary fiscal policy?
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?
Expansionary fiscal policy is so named because it is designed to expand real GDP.
What is the purpose of expansionary fiscal policy?
increase gvt exp
When does the government assume an expansionary fiscal policy position?
when it is weak
What is called deficit spending?
expansionary fiscal policy position
Which of the following is an example of expansionary fiscal policy?
cutting taxes
Strongest tool of expansionary fiscal policy?
More public expenditure
Which of these is also called deficit spending?
expansionary fiscal policy position
Is also called deficit spending?
expansionary fiscal policy position
Can Financing expansionary fiscal policy by increasing the deficit does not generally affect interest rates or inflation?
Expansionary fiscal policy or running the printing presses usually causes inflation. Sometimes it causes hyperinflation. It caused both the inflation and interest rate to rise to 20% under the Carter administration.
