Q. T Expansionary fiscal policy: increasing budget deficit (G or T) usually in a recession. Contraction fiscal policy: decreasing budget deficit (G or T ) usually in an economic boom. If government spends more than it brings in in taxes, what happens?
Q. Now looking at this scenario, would company rather increase wages slightly, not so much that it will decrease profits, but to a point where productivity may rise higher than what was originally given to employees?