When the government injects money into the economy or has less income than expenditures, this is described as what type of policy?

The concept of injecting money into the economy or having less income than expenditures aligns with expansionary policy. This type of policy is pursued by governments when they seek to stimulate economic growth, particularly during periods of economic downturn or recession. By increasing spending or reducing taxes, the government directly boosts demand within the economy, encouraging businesses to invest and consumers to spend, which in turn can lead to job creation and a reduction in unemployment.

Expansionary policy contrasts with contractionary policy, where the government would aim to reduce spending or increase taxes to cool down an overheating economy. Fiscal policy encompasses both expansionary and contractionary measures but is a broader term that refers specifically to government revenue and expenditure policies. Economic policy is even more generic, encompassing all actions the government takes to influence the economy, including monetary and fiscal policies.

In summary, the aspect of increasing spending and injecting money is firmly rooted in the principles of expansionary policy.