The Principle Underlying Fiscal Policy Suggests That When Unemployment Is

The principle underlying fiscal policy suggests that when unemployment is rising and the economy is going into a recession, fiscal policy should

A) stimulate economic activity by increasing government spending, decreasing taxes, or both.
B) regulate the action-reaction syndrome.
C) let the forces of supply and demand operate on their own.
D) curb economic activity by reducing government spending.
E) curb economic activity by increasing taxes.