Question

Explain why a government would choose to implement expansionary spending. Then, compare and contrast its positive and negative effects.

Answer 1

Answer:

A government would choose to implement expansionary spending and its negative and positive effects is explained below in details.

Explanation:

The goal of the expansionary fiscal strategy is to encourage growth to a healthy commercial level, which is required throughout the contractionary phase of the marketing cycle. The management wants to decrease unemployment, improve consumer desire, and evade a recession.

runs a budget excess, it is said to be involved in a fiscal reduction, slowing economic movement. The government can apply fiscal provocation to spur economic movement by the economy is in recession, as it diminishes the negative consequences of an expansionary fiscal policy lead to partially offset its stimulating effects.