a.w wk 5 disc

What is fiscal policy? What are the tools of fiscal policy? Discuss the impact of expansionary fiscal policy and specifically the fiscal policies used during the Great Recession of 2008-2009 on operation of business operation. Have we seen other significant fiscal policies enacted even more recently than 2008-9?

Submit your initial post by midnight, Day 3. Please respond to two of your classmates’ posts by midnight, Day 7.

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Week 5

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caleb Crumb` posted Feb 3, 2026 9:32 AM

Good morning,

Fiscal policy refers to how the government uses spending and taxation to influence overall economic activity and maintain economic stability. By adjusting government spending and tax policies, the government can affect employment, consumer demand, and economic growth. The main tools of fiscal policy include government spending programs, tax cuts, and tax increases, which are used differently depending on economic conditions. Expansionary fiscal policy is typically implemented during economic downturns or recessions and aims to stimulate growth by increasing government spending, lowering taxes, or both. These actions help put more money into the economy, encouraging consumers to spend and businesses to invest, which can lead to job creation and increased economic activity.

During the Great Recession of 20082009, the U.S. government used expansionary fiscal policy through the American Recovery and Reinvestment Act, which provided stimulus funding, tax rebates, and large investments in infrastructure to support businesses and reduce unemployment. These measures were intended to stabilize the economy and promote recovery during a period of severe financial crisis. More recently, during the COVID-19 pandemic, expansionary fiscal policies such as stimulus checks, enhanced unemployment benefits, and the Paycheck Protection Program helped sustain consumer demand and allowed many businesses to remain operational despite widespread shutdowns. Together, these examples show how fiscal policy can play a crucial role in supporting economic recovery during times of crisis.

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W5: Impact of expansionary fiscal policy on business environment (Mitchell Suh)

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Mitchell Suh posted Feb 2, 2026 4:12 AM

Fiscal policy is the governments use of spending and taxes to influence the economy. The main tools of fiscal policy include government spending, tax cuts or increases, and transfer payments such as unemployment benefits.

Expansionary fiscal policy is used during recessions to help stimulate economic activity. It works by increasing government spending or lowering taxes to boost demand. During the Great Recession of 20082009, the U.S. government used expansionary fiscal policy through the American Recovery and Reinvestment Act. This policy increased spending on infrastructure projects, provided tax relief, and expanded unemployment benefits. These actions helped businesses by increasing consumer spending and reducing the severity of job losses, even though many firms still faced financial challenges.

More recently, expansionary fiscal policy was used during the COVID-19 pandemic. The government issued stimulus checks, expanded unemployment benefits, and created programs like the Paycheck Protection Program to support businesses. These policies helped many companies stay open and keep employees during a difficult economic period.

Overall, expansionary fiscal policy helps support businesses by stabilizing demand and encouraging economic recovery during downturns.