Posted: May 24th, 2016

Identify each of the following as (i) part of an expansionary fiscal policy, (ii) part of a contractionary fiscal policy, or (iii) not part of fiscal policy. 3a. The personal income tax rate is lowered. 3b. The government increases spending on defence due to a change in spending priorities. 3c. The company income tax rate is lowered. 3d. The State of New South Wales builds a new tollway in an attempt to expand employment and ease traffic congestion.

Identify each of the following as (i) part of an expansionary fiscal policy, (ii) part of a contractionary fiscal policy, or (iii) not part of fiscal policy.
3a. The personal income tax rate is lowered.
3b. The government increases spending on defence due to a change in spending priorities.
3c. The company income tax rate is lowered.
3d. The State of New South Wales builds a new tollway in an attempt to expand employment and ease traffic congestion.