Fiscal policy is a term used regularly by politicians and media alike, but few use it accurately. Fiscal policy is simply an attempt by the federal government to regulate or stabilize the economy. So, each year as the federal government debates and proposes the next fiscal budget, Congress must keep in mind its goal of stabilization as it plans ahead. There are two major phases of the business cycle that you must concern yourself with. The first is the expansion phase and the second, the contraction phase.
Most people associate good times with the expansion and bad times with the contraction.
It really depends on your particular situation. The expansion phase has characteristics that help to define it. This scenario should sound familiar to you. We have been experiencing an expansion for almost the last decade. The American economy over the last 8-10 years has set many records.