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

2953 Views

See similar Economics IB tutors

Related Economics IB answers

All answers ▸

Explain why a perfectly competitive firm will make normal profit in the long run.


State the key assumptions and characteristics of a competitive market and outline the difference between the short-run and the long-run.


What is the effect of an indirect tax on the cigarette market?


Explain two possible government responses to the abuse of monopoly power.


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences