During Which of the Following Situations Would the Government Most

Multiple Choice

During which of the following situations would the government most likely have an expansionary fiscal policy?

A) when current output is above full-employment output
B) when the economy is expanding at a rapid pace
C) when inflation is at 10 percent per year
D) when the current unemployment rate is below the natural rate of unemployment
E) when the current unemployment rate is above the natural rate of unemployment