what-is-a-key-difference-between-expansionary-and-contractionary-fiscal-policies

Question

What is a key difference between expansionary and contractionary fiscal policies in terms of their economic impact?

Accepted Answer

Expansionary policy aims to increase economic output, while contractionary policy aims to reduce inflation.

Answer

Both policies aim to increase economic output.

Answer

Both policies aim to reduce inflation.

Answer

Expansionary policy aims to reduce inflation, while contractionary policy aims to increase economic output.