Fiscal policy that increases aggregate demand is:
A) balanced.
B) supplemental.
C) contractionary.
D) expansionary.

Name: Fiscal policy that increases aggregate demand is: A) balanced. B) supplemental. C) contractionary. D) expansionary.
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Question

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Fiscal policy that increases aggregate demand is called expansionary fiscal policy, because it aims to promote economic growth and reduce unemployment by increasing government spending or decreasing taxes, which leads to increased consumer spending and investment.

Fiscal Policy That Increases Aggregate Demand Is