The government might engage in expansionary fiscal policy if it wanted to

Question

Quizplus · Accepted Answer

Expansionary fiscal policy is implemented to increase aggregate demand and stimulate economic growth. One of the main objectives of expansionary fiscal policy is to reduce unemployment by increasing government spending or reducing taxes, which puts more money into consumers' hands and boosts consumption. Therefore, the best choice is reducing the level of unemployment (D).

The Government Might Engage in Expansionary Fiscal Policy If It