Discuss the primary goals of expansionary and contractionary fiscal policies and their effects on unemployment rates, inflation rates, interest rates, private investment, and GDP.

The primary goals of expansionary and contractionary fiscal policies and their effects on unemployment rates, inflation rates, interest rates, private investment, and GDP:

Country A pursues expansionary fiscal policy in order to grow the economy and create full employment.  For example, If Country B decides to cut tax rates or increase government spending, shifting the aggregate demand curve to the right , then it wants the economy to expand.

On the other hand, US Congress can also decide to raise tax rates or cut government spending, thus shifting aggregate demand to the left.

Explanation:

Country A's expansionary fiscal policy reduces the unemployment rates, increases inflation rates, interest rates, private investment, and GDP.

The US contractionary fiscal policies ensure that the unemployment rate is increased, while inflation and interest rates are reduced.  There is also reduced private investment and GDP as a result of the contractionary fiscal policies.

answer(d) all of the choices are correct;