How can fiscal policy be effectively utilized to close a recessionary gap and promote GDP growth?

Fiscal policy can help close a recessionary gap by increasing government spending or cutting taxes. When the government spends more money on things like roads, schools, or healthcare, it creates jobs and puts more money into people's pockets. This extra money helps boost consumer spending, which can lead to higher demand for goods and services. For example, if the government builds a new highway, workers get paid, and they might spend that money on local businesses, helping the economy grow. By using fiscal policy in these ways, the government can stimulate economic activity and help lift the economy out of a recession.