Laws that reduce inflation, decrease GDP (close a inflationary gap)
- Decrease government spending
- Tax Increases
- Combinations of the two
Expansionary Fiscal Policy (The Gas)
Laws that reduce unemployment rate & increase GDP (close a recessionary gap)
- Increases government spending
- Decrease taxes on consumers
Automatic or Built- in stabilizes:
Anything that increases the governments budget deficit during a recession and increases its budget surplus during inflation without requiring explicit action by policymakers.
Non- discretionary Fiscal Policy:
Transfer Payments:
a) Welfare Checks d) Corporate Dividends
b) Food Stamps e) Social Security
c) Unemployment Checks f) Veteran's Benefits
I like how you added videos to your blog because for me personally its way easier for me to learn or understand that way cause I can always go back or replay whatever I've heard or seen. I had a lot of trouble with fiscal policy but I had a way better understanding on the difference of Contractionary and Expansionary because I know how to tell the difference between to the two because of the activity we did in class.
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