An increase in government spending and/or a decrease in taxes designed to increase aggregate demand in the economy, thus increasing real output and decreasing unemployment. View Capstone Lesson(s) that address this concept
such as lowering taxes and increasing government spending aims to increase the output of economy.
A policy to increase governmental expenditures and/or to decrease taxes. See also fiscal policy.
A policy to decrease governmental expenditures and/or to increase taxes. See also fiscal policy.
Expansionary fiscal policy is an increase in government purchases or a decrease in tax revenues.