Expansionary fiscal policy is used to stimulate the economy, by increasing
government spending and/or lowering taxes. For example, by increasing social
security payments (such as unemployment benefi ts and state pensions), domestic
consumption should increase. This type of fi scal policy is used to reduce the
effects of an economic recession, by boosting gross domestic
product and reducing unemployment
(i did the second first and it kinda goes with the first)
Expansionary fiscal policy is used to stimulate the economy, by increasing government spending
and/or lowering taxes. For example, by increasing social security payments (such as
unemployment benefits and state pensions), domestic consumption should increase. This type of
fiscal policy is used to reduce the effects of an economic recession, by boosting gross domestic
product and reducing unemployment. (draw a graph)
For the second one Fiscal policies are tax related (monetary is the supply of money) i hope u
know this or I'm dead
An increase in fiscal policies lead to money in the as i used to call it "imaginary pot" of the
government (their budget) this can then be used on services such as police or healthcare or
education etc but also roads, schools etc which is government capital expenditure on
infrastructure this encourages investment in the economy and also lowering the rate of corporate
tax can increase FDI (foreign direct investment) thereby boosting the economy's potential output
(tax cuts can boost domestic spending)
So in this sense it is a long term way of increasing economic growth as it will increase the
standard of living as well as allowing for money to circulate in the economy and redistribution of
income as a result of progressive taxation and state given benefits
Another thing that can be mentioned if you want is that fiscal policy can help regulate the use of
demerit goods (cigarettes and alcohol) stuff which causes a negative spill-off is leads to an
increase/decrease in productivity in some cases (you also need to mention that if it's too highly
regulated then it can cause issues especially alcohol because it's used for various reasons)
There's probably not enough for either of them but just a few ideas i don't know how technical i
was supposed to be so i kept it simple