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If Fiscal Policy is trying to promote stability and economic growth through tax cuts, what type of policy is Fiscal policy using?

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If Fiscal Policy is trying to promote stability and economic growth through tax cuts, what type of policy is Fiscal policy using? Answer: Expansionary Fiscal Policy

If the government uses tax cuts to promote stability and economic growth, it is implementing expansionary fiscal policy. This type of policy increases the money in consumers' pockets and businesses' retained earnings, which stimulates aggregate demand and can help boost economic activity, especially during a recession.

Question context

This question is part of 📚 General Knowledge within the broader 🌐 Current Affairs & GK subject and appears in the SPSC – Sindh Public Service Commission preparation collection. Reviewing the answer together with nearby questions helps reinforce the underlying concept and identify how it may appear in competitive exams.