When the economy is at full employment,expansionary fiscal policy will not change unemployment in the long run,but will increase the price level.

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When the economy is at full employment, there are no unemployed resources (labor, capital, etc.) available to produce more output, so any increase in aggregate demand caused by expansionary fiscal policy will only push up prices in the long run (since firms will have to bid up wages and other input prices to attract the limited resources they need). This is known as the "classical" or "neoclassical" view of macroeconomics, which assumes that markets always clear and that there is no long-term trade-off between inflation and unemployment. However, some economists argue that there may be short-term "stickiness" in wages and prices that allows expansionary fiscal policy to temporarily reduce unemployment even at full employment, but this is a matter of debate and empirical evidence.

When the Economy Is at Full Employment,expansionary Fiscal Policy Will