💰Expansionary fiscal policy increases the amount of money available to companies and households, boosting the economy.
📈The goal of expansionary fiscal policy is to return the economy to a healthy growth rate of around 2-3% per year.
🏢Increasing government spending on infrastructure projects stimulates the economy through the hiring of workers and subsequent income circulation.
💵Tax cuts increase the amount of money available to individuals and businesses, encouraging consumer spending and business investment.
🌍Expansionary fiscal policy is attractive to policymakers as it allows them to react quickly to economic crises and high unemployment.