Final answer:
Expansionary policies are used by governments to increase planned spending and output, which include monetary and fiscal policy actions to stimulate aggregate demand and boost the economy.
Step-by-step explanation:
Government policy actions intended to increase planned spending and output are called expansionary policies. These policies are a part of macroeconomic policy tools and include both monetary and fiscal policies that aim to increase aggregate demand. Expansionary fiscal policy, specifically, achieves this by increasing government spending, reducing taxes, or both, which can lead to an increase in consumption, investment, and government purchases, ultimately boosting economic activity.