What is expansionary fiscal policy? What is contractionary fiscal ...

[Yi-Chen]

What is expansionary fiscal policy? What is contractionary fiscal policy?
 
  What will be an ideal response?

Question 2

As the recession persisted into 2009, the unemployment rate in the United States rose to ________, the highest rate since the recession of 2001-2002 and the second highest since the Great Depression.
 
  A) 5.5 percent B) 9.3 percent C) 17.6 percent D) 25.1 percent

[voltaire123]

Answer to Question 1

An expansionary fiscal policy is a decrease in taxes or an increase in government purchases intended to increase aggregate demand. A contractionary fiscal policy is an increase in taxes or a decrease in government purchases intended to decrease aggregate demand.

Answer to Question 2

B

[Yi-Chen]

Thanks for the timely response, appreciate it

[marict]

Wow, this really help