Using aggregate demand and aggregate supply analysis, explain the impact on an economy of an expansionary fiscal policy

      

Using aggregate demand and aggregate supply analysis, explain the impact on an
economy of an expansionary fiscal policy

  

Answers


Lydia
An expansionary fiscal policy involves government attempts to increase aggregate demand. It will involve higher government spending and/or lower
tax. In theory, higher government spending will increase aggregate demand
(AD=C+I+G+X-M) and lead to higher economic growth.
lydiajane74 answered the question on July 5, 2018 at 05:59


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