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Question 3 Malaysia's fiscal stance will remain expansionary this year to ensure that the recovery momentum is maintained, economic scarring is minimised, and the economy

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Question 3 Malaysia's fiscal stance will remain expansionary this year to ensure that the recovery momentum is maintained, economic scarring is minimised, and the economy returns to its medium-term growth trajectory. To accelerate the resumption of fiscal consolidation and ensure the Malaysia's debt affordability remains manageable, the government has undertaken efforts to implement additional reforms as the ministry aims for a deficit of 3% to 3.5% by the end of 2025, (Zafrul, 2022). Based on the above statement, discuss the expansionary fiscal policy implemented by the government to support businesses and strengthen the nation's economy. Show the effects on disposable income, purchasing power, consumption and aggregate demand. (Total: 10 Marks)

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