Week 5: AD, AS and Fiscal Policy - Assignment 2010 Fiscal Policy has been a key policy in addressing the aggregate demand consequence of the financial crisis in the United States. However, the effects of the fiscal policy may not always be the same for everyone involved. Tax cuts may be a great or detrimental move depending on what you want to have accomplished and the condition the economy is in. A tax cut could affect the middle class greatly as it is the largest economic group in America. It may also have some impact on the lower class. In the economic time of increasing and decreasing taxes these groups typically pay more taxes than the wealthier upper class. By lower the taxes for the lower and middle class it keep income in their pockets which in return encourage spending. This will then lead to an increase in Gross Domestic Product “GDP” which promotes a better economy. In the instance that the government decides to adjust spending, its policy may affect particular groups. In the instance of the ending the space exploration program, it will affect
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