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

3343 Views

See similar Economics IB tutors

Related Economics IB answers

All answers ▸

Using a price ceiling diagram, analyse the impact a maximum price might have on the market for food.


What are minimum prices and what are the effects of minimum prices?


Can you explain the concept of the Price Elasticity of Demand?


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


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:

© 2026 by IXL Learning