Respuesta :
Expansionary or "loose" fiscal policy is defined as one that directly boosts aggregate demand through an increase in government spending. The opposite is...
What kind of policy is implemented to combat an expansionary or contractionary recession?
Recessions are treated by expansionary fiscal policy. reducing aggregate demand through fiscal policy in order to constrict the economy, which will result in reduced output, increased unemployment, and a lower price level. To correct booms, fiscal policy is contracted.
What are some instances of fiscal policy that is expanding and contracting?
When the Congress takes action to lower tax rates or increase government expenditure, the aggregate demand curve is moved to the right. This is known as expansionary fiscal policy. When Congress increases tax rates or reduces government expenditure, the shift in aggregate demand is known as a contractionary fiscal policy.
To know more about discretionary policy visit:-
https://brainly.com/question/13098323
#SPJ4
