What is fiscal stimulus?

Question

Accepted Answer

Fiscal stimulus refers to government policies aimed at increasing aggregate demand and stimulating economic growth.

Fiscal stimulus involves increasing government spending or reducing taxes to boost economic activity.
It is typically used during times of economic downturn or recession.
Examples of fiscal stimulus measures include infrastructure spending, tax cuts, and direct cash transfers to individuals or businesses.
The goal of fiscal stimulus is to encourage consumer spending, investment, and job creation.
Fiscal stimulus can have both short-term and long-term effects on the economy.

Accepted Answer

Fiscal stimulus refers to the use of government spending and taxation policies to stimulate economic growth and stabilize the economy during periods of recession or economic downturns. It involves increasing government spending, reducing taxes, or a combination of both, to encourage consumption and investment and boost aggregate demand.

What is fiscal stimulus?

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