The article analyzes the impact of different types of fiscal policies on the economy in China. It compares the effects of deficit-financed tax cuts, two-expansionary policies, and balanced budget spending on key economic factors. The study finds that both deficit-financed tax cuts and two-expansionary policies have similar effects on output stimulation. Two-expansionary policies have the most impact on consumption, while deficit-financed tax cuts and two-expansionary policies have similar effects on investment. Balanced budget spending policies can lead to price level increases, while other fiscal policies help stabilize prices.