To what extent might a government implement an expansionary fiscal policy?

An expansionary fiscal policy is where a government decides to decrease taxes and increase public spending. An expansionary fiscal policy will usually take place when a government is not in a relatively large budget deficit.
The British government might decide to implement an expansionary fiscal policy to stimulate economic growth. By deciding to lower corporation tax (currently at 19%), firms will be attracted to the UK due to the prospect of maximising their profits, this in turn will result in an inflow of FDI into the UK, forcing aggregate demand (AD) to increase with investment being a key component of AD, stimulating economic growth. In addition to this, more jobs will be created due to the increase in the number of firms, increasing not only consumption due to more people in work but also productivity, resulting in long-run aggregate supply (LRAS) increasing by shifting to the right, again stimulating economic growth. This demonstrates how an expansionary fiscal policy can stimulate economic growth through increasing AD and LRAS. However, a problem with this policy is that it is a long-run strategy; this means that the benefits of this policy may not come into fruition for many years as there is a time lag when a firm decides to move overseas. Therefore, if the British government wants to stimulate economic growth in the short-run, an expansionary fiscal policy by cutting corporation tax is not a rational decision, as it will only help the economy in the long-run.