Question

When the government cuts the budget for an agency, this is an example of policy.

Answer 1

Answer:

Expansionary Fiscal Policy

Explanation:

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 of budget surpluses. They are typically employed during recessions or amid fears of one to spur a recovery or head off a recession.