Economics Aggregate Demand And Supply Questions
Expansionary fiscal policy refers to the use of government spending and taxation policies to stimulate economic growth and increase aggregate demand. It involves increasing government spending, reducing taxes, or a combination of both, in order to boost consumer and business spending, increase investment, and stimulate overall economic activity. The goal of expansionary fiscal policy is to create a favorable economic environment that encourages increased production, employment, and consumption, ultimately leading to economic expansion and recovery.