Expansionary - The government spends more money on public policies (like building houses, roads, bridges, schools and hospitals etc) - to create more jobs. This is to help unemployed people during a recession.
Contractionary - The government raises taxes on people. People pay more taxes so the government gets more money. This is to deal with excessive money in the economy (which may lead to high inflation).
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Expansionary - The government spends more money on public policies (like building houses, roads, bridges, schools and hospitals etc) - to create more jobs. This is to help unemployed people during a recession.
Contractionary - The government raises taxes on people. People pay more taxes so the government gets more money. This is to deal with excessive money in the economy (which may lead to high inflation).