Activity No 2 ( Fiscal Policy Lecture In The Ph )

A sd efin ed,F is ca lp olic yr e fe rst ot h eg ove rn m ent'sa ctio nsr e gard in gt a xa tio na nds p endin g.T hisi st oi n flu encet h ep erfo rm anceo ft h ee co nom y.Ar e ductio no ft a xi sa ne xp ansio naryf is ca lp olic ya si ti n cre ase st h ed is p osa blei n co m ew hilet h eo pposit ei sc a lle dc o ntr a ctio naryf is ca lp olic ya sd is p osa blei n co m ei sr e duce da st a xi n cre ase s.I nt e rm so fg ove rn m ents p endin g,a ne xp endit u rei n cre asei sa ne xp ansio naryf is ca lp olic ya si tp ro pelst h ee co nom yb ys tim ula tin gd em and,w hilear e ductio ni nt h ee xp endit u rec o nstit u te sac o ntr a ctio naryf is ca lp olic ya si tr e duce si t sd