Question

Expansionary fiscal policy is used by the government to A. control inflation. B. reduce the national debt. C. create new jobs in the economy. D. reduce the budget deficit.

Answer 1

Answer:

Option C: Create new jobs in the economy

Explanation:

Fiscal policy is a federal government ability to keep the economy stable through highing or lowering taxes or government spending.

Expansionary Fiscal Policy is simply described as the higher rate in purchases by government, lower rate in net taxes that is targeted soas to bring about higher aggregate demand enough to lower unemployment back to equilibrium. Government aim to reduce unemployment by providing more jobs for the people.

Expansionary fiscal policy aim to decrease unemployment byincreasing government spending and/or lowering taxes.