Submit a question to our community and get an answer from real people.

What is the difference between contractionary and expansionary fiscal policy?

Report as

Expansionary fiscal policy is an increase in government expenditures and or a decrease in taxes that cause government budget to increase or budget surplus to decrease. Contractionary fiscal policy is a decrease in government expenditures and or increase in taxes that causes the budget to decrease and the surplus to increase.

Helpful Fun Thanks for voting Comments (0)
Report as
Add a comment...
Do you have an answer?
Answer this question...
Did you mean?
Login or Join the Community to answer
Popular Searches