BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -While expansionary fiscal policy is especially popular among voters because it means tax cuts or increased opportunities for government money, contractionary fiscal policy is significantly less popular due to its tax increases or slashing of government purchases, and many policymakers avoid it.

Detailed explanation-2: -Fiscal policy that increases aggregate demand directly through an increase in government spending is typically called expansionary or “loose.”

Detailed explanation-3: -The two major examples of expansionary fiscal policy are tax cuts and increased government spending. Both of these policies are intended to increase aggregate demand while contributing to deficits or drawing down budget surpluses.

Detailed explanation-4: -The purpose of expansionary fiscal policy is to boost growth to a healthy economic level, which is needed during the contractionary phase of the business cycle. The government wants to reduce unemployment, increase consumer demand, and avoid a recession.