If Congress passes legislation to increase government spending to counter the effects of a recession, then this would be an example of a(n):

Question

Quizplus · Accepted Answer

An expansionary fiscal policy involves increasing government spending and/or decreasing taxes to stimulate economic growth and counteract a recession. This is the opposite of a contractionary fiscal policy, which involves decreasing government spending and/or increasing taxes to slow down economic growth and combat inflation. Supply-side fiscal policy focuses on supply-side factors such as reducing regulations and lowering taxes to increase the supply of goods and services. Nondiscretionary fiscal policy refers to automatic stabilizers such as unemployment insurance and progressive taxation that help stabilize the economy without explicit action from policymakers.

If Congress Passes Legislation to Increase Government Spending to Counter