Explain the actions the federal government would take while engaging in expansionary fiscal policy in the necessary change in taxes and government spending and the effect on aggregate demand, GDP, and employment.

In an effort to move the economy out of a recession, the federal government would engage in expansionary economic policies. Respond to the following points in your paper on the actions the government would take to address expansionary fiscal and monetary policies:

Expansionary Fiscal Policy:

Explain the actions the federal government would take while engaging in expansionary fiscal policy in terms of the following:

• The necessary change in taxes and government spending,
• The effect on aggregate demand, GDP, and employment.