Understanding Fiscal Policy: Effects on Government Budget, National Debt, and the Economy

The video tutorial explains how government budgets can lead to a surplus, balance, or deficit, affecting national debt. It covers fiscal policy, distinguishing between expansionary and contractionary types, and their effects on aggregate demand, inflation, real output, and unemployment. The tutorial also touches on potential supply side impacts of fiscal policy, depending on government spending and taxation's influence on productivity and enterprise.

Describe the effects of contractionary fiscal policy on aggregate demand and unemployment.

How can fiscal policy potentially impact the supply side of the economy?