Explain the difference between expansionary and contractionary fiscal policies

Define key terms: Expansionary - Used in deflationary gap to cause AD to shift right an stimulate economic growth (accelerator) and Fiscal - A set of government policies that increase the quantity and quality of the factors of production in a given economy by using taxation and government spending.
Draw diagram and explain it using real life example e.g. 2008 depression when the UK government bailed out the banks.

MD
Answered by Matthew D. Economics tutor

3077 Views

See similar Economics IB tutors

Related Economics IB answers

All answers ▸

What is the demand and the supply in a market ? How can you draw them how do you derive the optimal price and quantity *?


What are the characteristics of a perfectly competitive market structure?


How do automatic stabilizers work?


Evaluate the effects of a price ceiling on the housing market


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning