Answer: No, government services could create inflation, which decreases the purchasing power of consumers.
Expansionary fiscal policy is when the government expands the money supply in the economy. It can either increase government spending or cut taxes. This provides consumers and businesses more money to spend.
The purpose of expansionary fiscal policy is to boost economic growth. It is used when the government wants to reduce unemployment, increase consumer demand, and avoid a recession. If the recession has already occurred, it seeks to end it.
The policy comes with some risks. High inflation is one of the most common ones. There is also a time lag between when a policy move is made and when it works its way through the economy, which makes analysis difficult.
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