Budgetary stance

Question 1

Budgetary stance

Answer 1

Budget stance refers to how the budget changes from year to year and whether it is expansionary or contractionary

Question 2

Expansionary budget stance:

Answer 2

When there is an increase in outlays and the deficit intends to greater than previous / the surplus intends to be smaller

More spending

Expansionary budgetary stances are found in periods of low economic growth and aim to boost the economy.

Question 3

Contractionary budget stance:

Answer 3

When there is an increase in receipts and the deficit intends to smaller than previous / the surplus intends to be greater

More saving

Contractionary budgetary stances are found in periods of high economic growth and aim to slow down the economy