Question

Explain why a government would choose to implement expansionary spending. Then, compare and contrast its positive and negative effects. I'll give brainliest pretty please

Answer 1

Answer:

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.

runs a budget surplus, it is said to be engaging in a fiscal contraction, slowing economic activity. The government can use fiscal stimulus to spur economic activity by  the economy is in recession, as it lessens the negative impacts of an expansionary fiscal policy tend to partly offset its stimulative effects.

Answer 2

Answer:

Explanation:

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.

runs a budget surplus, it is said to be engaging in a fiscal contraction, slowing economic activity. The government can use fiscal stimulus to spur economic activity by  the economy is in recession, as it lessens the negative impacts of an expansionary fiscal policy tend to partly offset its stimulative effects.

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