When the Congress lowered taxes to aid in the recovery of a recession, it is an example of a expansionary fiscal policy.
Fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.
Fiscal policies can either be expansionary or contractionary. Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.
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