USA HISTORY

Detailed explanation-1: -Fiscal policy is the use of government spending and taxation to influence the economy. Governments typically use fiscal policy to promote strong and sustainable growth and reduce poverty.

Detailed explanation-2: -Expansionary fiscal policy increases the level of aggregate demand, either through increases in government spending or through reductions in taxes. Expansionary fiscal policy is most appropriate when an economy is in recession and producing below its potential GDP.

Detailed explanation-3: -Lower taxes on research and development of new technology. Thus when there is increased production, it steers the economic growth of a country. The tools that are used in the supply-side fiscal policy are the reduction of taxes and deregulation.

Detailed explanation-4: -Supply-side economics holds that increasing the supply of goods translates to economic growth for a country. In supply-side fiscal policy, tax cuts, lower interest rates, and deregulation help foster increased production.