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Introduction: Sort the effects of government-spending policies into the correct categories.
Lowers the unemployment rate
Effects of expansionary spending Effects of contractionary spending
Lowers government debt
Can trigger inflation
Can cause consumers to spend
can create business growth
Can improve inflation rates
Intro
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Answer :

fadedskates01

Answer:

Exansionary:

Lowers the employment rate

Can trigger inflation

Can create business growth

Contractionary:

Lowers governments debt

Can cause consumers to spend less

Can improve inflation rates

Explanation:

ogorwyne

The effects of government spending expansionary policies are:

  • It can trigger inflation
  • It can create business growth
  • It can lower the unemployment rate

The effects of government deflationary policies are:

  • It can lower government debt
  • It can cause consumers to spend less
  • It can improve inflation rate

Government expansionary policies are ways that the economy is stimulated through an increase in government expenditure. An expansionary monetary policy raises the amount of borrowing the government does.

A contractionary spending policy is one that reduces borrowing in the country. In a contractionary fiscal policy, the government of a country would reduce their expenditure or they would raise taxes.

This would cause people to spend less money in the country.

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