Expansionary fiscal policy means it is increasing government spending and reducing taxation. This is an attempt to increase the money available in the economy. The purpose is to increase growth but also reduce unemployment. this is by increasing the demand for labour. The way this happens is that the government spends more. Which is bringing in more labour for public works and the public is taxed less. Which means they have more money to demand goods. Which is increasing demand for goods and as a result growth and demand for jobs. Its main drawback is that if the government isnt careful it can lead to inflation.
