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Hello.
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So in this video, we are trying to answer the question of whether or not you agree that a political commentator used to argue that a government is more likely to enact expansionary physical policy because expansionary physical policy is popular, while contractionary physical policy is unpopular.
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So to analyze this question, we should first start with reminding ourselves, what is physical policy? so the key of physical policy is that physical policy is conducted by the government.
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In the economy, there are usually two types of macroeconomic policies.
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One is physical policy, the other is monetary policy.
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The difference between these two types of policies is that physical policy is conducted by the government, well, monetary policy is conducted by the central bank, which is a different organization than a government.
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There are two tools that government can use when they are conducting physical policy.
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One is changing tax rates, for example, increasing or decreasing personal income tax.
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And the second tour that the government has is to change government spending.
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For example, they could increase their spending by implementing an infrastructure project.
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When the government wants to conduct or in that expansionary physical policy, what they need to do would be either decreasing tax rates...