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to encourage growth and try to stop or prevent a recession

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11y ago
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9y ago

Expansionary fiscal policy serves a few different functions including lowering the unemployment rate. Another goal is to stimulate the economy broadly, and close a recessionary gap.

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MeGustaCulo

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4y ago

increase output

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Q: Why does the government sometimes use an expansionary fiscal policy?
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Related questions

Why does government sometimes use an expansionary fiscal policy?

to encourage growth and try to stop or prevent a recession


When does the government assume an expansionary fiscal policy position?

when it is weak


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


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 a policy that have no demand


Which one of these does not describe a strong economy?

The government will assume an expansionary fiscal policy position.


What is the definition of expansionary fiscal policy?

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.


What would be an example of expansionary fiscal policy?

Lowering taxes and raising government spending.Social security measures taken by the govt. is an example of expansionary policy. Subsidies, Tax rate cuts etc are other examples...There is a few example of expansionary fiscal policy. Some of the examples are tax cuts, rebates and increased spending.


Expansionary fiscal policy is so named because it?

Expansionary fiscal policy is so named because it is designed to expand real GDP.


What is expansionary policies?

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


You can be more sure of success while implementing a restrictive fiscal policy than while implementing an expansionary fiscal policydiscuss?

If by "restrictive" you mean Government oversight and regulation and by "expansionary" you mean globalization and deregulation of the finance industry, then of course a restrictive policy is a safer bet.


What is the purpose of expansionary fiscal policy?

increase gvt exp