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Expansionary fiscal policy includes tax cuts, transfer payments, rebates and increased government spending on projects such as infrastructure improvements.
Expansionary fiscal policy is an economic policy whereby the government spends more money than it collects in taxes, in an effort to stimulate the economy. The goal of an expansionary fiscal policy is to boost economic growth and reduce unemployment.
This extra spending is usually financed by borrowing money, which can lead to an increase in the national debt. expansionary fiscal policy is typically used during periods of economic downturn, in an effort to boost economic activity and employment. An expansionary fiscal policy is one that is designed to increase aggregate demand in the economy.
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