Question

What type of policy is President Obama referring to when he says, “More people spending more money means more businesses will be able to hire more workers, and the entire economy gets another boost”?

Answer 1

He is referring to an expansionary policy.

Answer 2

Expansionary fiscal policy

Step-by-step explanation:

An expansionary fiscal policy happens when the government either decides to lower taxes, increase government spending, or a combination of both. The purpose of this type of policies is to increase households' disposable income. Private consumption is by far the largest component of the GDP, around 70%, so an increase in private consumption should boost economic growth.