Our country has had some insignificant moments in these two decades. As a result of these experiences, our economy has borne a heavy burden that has resulted in unsubstantial unemployment rates, fluctuating interest rates, unstable GDP, and increased taxes. Our behavior when we are involved in a national crisis is this: we panic and look to the government to end the chaos and restore peace. The federal government's responsibility to its citizens is to respond to changes in the economy using the tools necessary to restore stability. Expansionary fiscal and monetary policies are economic policies used by the government to smooth out extreme fluctuations in our economy. Due to the previous state of the U.S. economy, the federal government has had to decide which products it wants to purchase; what payments he wishes to make; what taxes it will collect or reduce. Fiscal policy directly affects the budget and the deficit. The difference between what a government spends and what it earns in taxes in a given period is known as the budget deficit and there are many reasons why this can happen. For example, if our government continues to spend money that does not exist, the debt will obviously accumulate. The government cannot maintain this situation without creating more debt. It's the same as budgeting your personal accounts by getting a new credit card or loan to consolidate your old debts and then reusing your old cards. In the long run, you end up digging yourself a deeper hole. Another reason could be that due to increasing unemployment rates, fewer taxes are being paid to pay our country's bills or to reinvest in the economy. “We speak of expansionary fiscal policy when expenditures exceed revenues or the budget is in deficit. Expansionary fiscal policy increases aggregate demand when the government increases purchases and holds taxes constant and when it reduces taxes and increases transfer payments, making households larger. Generally, when the economy is in recession, you can expect the deficit as well as government spending to increase due to safety net requirements and declining tax revenues. Fiscal policy is used to manage the economy; it also affects the total gross domestic product or GDP. Expansionary fiscal policies are expected to increase demand for goods and services, leading to increased production and prices. So when the economy is in recession, spare production capacity and unemployment increase, this demand will lead to increased production without increasing prices. During recessions, automatic stabilizers come into play, such as unemployment insurance and tax changes.