(Figure: Determining Fiscal Policy) the Best Discretionary Fiscal Policy Option

Multiple Choice

(Figure: Determining Fiscal Policy) The best discretionary fiscal policy option is:

A) expansionary fiscal policy that leads to full employment.
B) contractionary fiscal policy that leads to full employment.
C) a combination of expansionary and contractionary fiscal policies to achieve full employment and stable prices.
D) only fiscal policies that lead to a lower price level.