Explain the difference between expansionary and contractionary fiscal policies

Define key terms: Expansionary - Used in deflationary gap to cause AD to shift right an stimulate economic growth (accelerator) and Fiscal - A set of government policies that increase the quantity and quality of the factors of production in a given economy by using taxation and government spending.
Draw diagram and explain it using real life example e.g. 2008 depression when the UK government bailed out the banks.

Answered by Matthew D. Economics tutor

2527 Views

See similar Economics IB tutors

Related Economics IB answers

All answers ▸

What are arguments in favour of protectionist policies?


Discuss the possible consequences of the imposition of an indirect tax on cigarettes for the different stakeholders in the market.


Why is it ineffective to tax inelastic products as a means to deter their consumption?


Explain how a change in one of the determinants of supply could lead to a decrease in the price of rice.


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2024

Terms & Conditions|Privacy Policy
Cookie Preferences