What is expanionary demand side policy:
Expansionary demand-side policy refers to government actions aimed at increasing overall demand in the economy to stimulate growth, especially during periods of recession or slow economic activity. These policies focus on boosting consumer spending, business investment, and overall economic output.
Types of Expansionary Demand-Side Policies:
Fiscal Policy – Involves government spending increases and tax cuts to put more money into the economy. For Example, Higher infrastructure spending, tax rebates to consumers.
Monetary Policy – Involves central bank actions to lower interest rates and increase money supply, making borrowing cheaper. For Example, Lowering interest rates, quantitative easing.
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