What are examples of fiscal policy?
September 28, 2008
Rani R asked:
I know definitions of the three types of fiscal policy: expansion, contractionary, and neutral. For clarity do you happen to have examples of each one? Thank you in advance.
I know definitions of the three types of fiscal policy: expansion, contractionary, and neutral. For clarity do you happen to have examples of each one? Thank you in advance.
September 29th, 2008 at 4:38 am
Fiscal expansion = budget deficit.
Fiscal contraction = budget surplus.
Neutral fiscal policy = balanced budget.