Expansionary fiscal policies are meant to stimulate the economy during recessions and other tough times. Check out some ...

An expansionary fiscal policy lowers tax rates or increases spending to increase aggregate demand and fuel economic growth. A contractionary ... more highways, for example, could increase ...

For instance, the budgetary consolidations by Denmark and Ireland in the early 1980s are examples of contractionary fiscal policy with expansionary effects on economic activity. Reductions of ...

given all of the above, more likely the expansionary fiscal policy will end up being contractionary in terms of output. This will exacerbate the crises, especially given the “initial conditions ...