A slow down the pace of the economic

A country could adopt two different fiscal policy which is
the Expansionary and Contractionary fiscal policy depending on the economic
conditions of the country, it is like an interference to help dictate the
direction of an economy.

For example, Expansionary Fiscal Policy is more suitable to
be used when the country`s economy is going through a recession, since the GDP of
the country is at the lower as compared to in a normal situation or the country
that is on a point that is on the PPF curve. During this period, government can
help to subsidies more for healthcare since going through a recession some
people might be out of work and cut taxes to reduce the burdens on consumers
like income tax, consumers will have more disposable income at their disposal
to use to spend or invest and, they can decrease corporate tax. There is an
increase in government spending (G) to help with healthcare and decrease in tax
so that consumption (C) increases as consumers have more disposable income and
more investments (I).

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An example for Contractionary Fiscal Policy would be a
country might be experiencing a rapid economic growth, therefore, there are
bound to be problems like high inflation rate, to slow down the pace of the economic
growth and inflation rate so that consumers will not be at loss or overwhelm as
their salary cannot cover their general expenses when the general price
skyrocket. Therefore, government increase taxes like corporate tax or personal
income tax and government spending will be reduced as the grants given for
housing decreases. There is a decrease in government spending (G) and increase
in tax which leads to lower disposable income (decrease in C) and decrease in
investment (I).

In a nutshell, it depends on the economy of the country to
determine the policy the country would adopt but there might be time lag as
planning take too long so implementation of any changes might not be plausible.