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Fiscal expansion Group of answer choices decreases aggregate demand and causes output to decline. decreases aggregate demand and causes output to rise. decreases government expenditures. stimulates aggregate
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28 votes
Fiscal expansion Group of answer choices decreases aggregate demand and causes output to decline. decreases aggregate demand and causes output to rise. decreases government expenditures. stimulates aggregate demand and causes output to rise. stimulates aggregate demand and causes output to decline.

User Wayne Warren
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20 votes
20 votes

Answer:

Fiscal expansion

stimulates aggregate demand and causes output to rise.

Step-by-step explanation:

The Federal Government employs a fiscal expansion policy when it wants to boost economic growth. Such a policy is always needed during the contractionary phase of the business cycle. The purposes of a fiscal expansion policy by the government are to reduce unemployment, engender consumer demand and growth, and avoid an economic downturn.

User Dimitri Kopriwa
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