sentences:  Raising taxes and reducing the budget deficit is deemed to be a restrictive fiscal policy as it would reduce aggregate demand and slow down GDP growth.Lowering taxes and increasing the budget deficit is considered an expansive fiscal policy that would increase aggregate demand and stimulate the economy.The classification of some macroeconomic variables as "instruments" and some others as "targets" or "objectives" is originally due to Jan Tinbergen, who used these concepts in his books "On the Theory of Economic Policy" (1952) and "Economic Policy