1、 https:/crsreports.congress.gov Updated December 3, 2020Introduction to U.S. Economy: Fiscal PolicyWhat Is Fiscal Policy? Fiscal policy is the means by which the government adjusts its budget balance through spending and revenue changes to influence broader economic conditions. According to mainstre
2、am economics, the government can affect the level of economic activitygenerally measured by gross domestic product (GDP)in the short term by changing its levels of spending and tax revenue. This In Focus presents an introduction to fiscal policy. For a more in-depth look at fiscal policy, its effect
3、 on the economy, and its use by the government, refer to CRS Report R45723, Fiscal Policy: Economic Effects, by Marc Labonte. Fiscal policy is often characterized by its countercyclical or procyclical nature. Countercyclical policy attempts to counteract the business cycle by promoting growth throug
4、h expansionary policy during a recession and preventing “overheating” through contractionary policy during an expansion. Procyclical policy does the opposite and is generally seen to be counterproductive, potentially overheating the economy during expansions and further dampening growth during reces
