Whether there will be an income-expenditure gap in retirement depends on several factors, including your current income, lifestyle, savings, investments, inflation, and post-retirement expenses.

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Expansionary fiscal policies include increased federal spending, reduced taxes, and direct payments. Issues like inflation and budget deficits often arise from these policies. Despite drawbacks ...

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The appropriate fiscal policy for addressing a recessionary gap is known as expansionary fiscal policy, which aims to boost aggregate demand, encourage business investment, and create jobs.

The goal is to close the output gap and return the economy to full employment by stimulating spending and investment. Challenges arise when expansionary fiscal policy leads to rising public debt.