Question

The goal of expansionary fiscal policy with respect to output is to: Multiple Choice increase spending and shift aggregate demand to the right in an effort to reach full employment output. increase spending and aggregate demand to get back to an output level the government is comfortable with. decrease government spending in an attempt to get the private economy back on track. increase spending and shift aggregate demand to the left in an effort to reach full employment output.

Answer 1

Increase spending and shift aggregate demand to the right in an effort to reach full employment output.

Step-by-step explanation:

The goal of expansionary fiscal policy with respect to output is to reduce the problem of unemployment. In order to let this work, the government must increase its spending or Decrease the tax rate. This will make the Aggregate Demand Curve to the right which is a proof of increasing real Gross Domestic Product (GDP) as well as gradual reduction of unemployment.