ULTRAEXPANSIVE when the objective is to stimulate aggregate demand, an Expansive Fiscal Policy is applied, especially when the economy is in recession and needs a boost to expand. Higher spending tends to the deficit or can even cause inflation (higher public spending and lower taxation). If these measures are taken to extremes, there is talk of ultra-expansionary policy, as has happened in Chile and many other countries that have wanted to alleviate the effects of the coronavirus pandemic.
