Due to the pandemic, the federal government announced many measures to help those negatively affected. The budget deficit surged to more than $300 billion. What is the fiscal stance of the federal government's recent budget policy? Neutral Expansionary Contractionary

Due to the pandemic, the federal government announced many measures to help those negatively affected. The budget deficit surged to more than $300 billion. What is the fiscal stance of the federal government's recent budget policy? Neutral Expansionary Contractionary

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter24: Fiscal Policy

Section: Chapter Questions

Problem 1P

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Concept explainers

Fiscal Policy and Money Market

Fiscal policy is one of the important tools that is used by the government to control inflation or aggregate demand in the economy. Under this policy, there are two rules which are used by the government, one is the expenditure of the government and the other is the taxation or income of the government which it collects from the public.

Question

11.1 Due to the pandemic, the federal government
announced many measures to help those
negatively affected. The budget deficit surged to
more than $300 billion. What is the fiscal stance of
the federal government's recent budaet policy?
Neutral
Expansionary
Contractionary

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