Explain the contractionary and expansionary fiscal policies


Consider the following questions:

Question 1. Explain the viewpoints of Classical and Keynesian economists. (If desired, you may present the viewpoints of another type/school of economic thought.) How did the economy that existed at the time of these theories influence them? Which theory is more appropriate for the economy today? Why?

Question 2. What is the difference between contractionary and expansionary fiscal policies? Which is more appropriate today? Explain your answer. How might contractionary and expansionary fiscal policies affect your business or organization (or an organization or business with which you are familiar)?

 

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