Which of the Following Is the Correct Sequence of Events

Multiple Choice

Which of the following is the correct sequence of events by which fiscal policy impacts unemployment?

A) An increase in government spending causes an increase in aggregate demand, which leads to higher output with more jobs.
B) An increase in government spending causes an increase in short-run aggregate supply, which leads to higher output and more jobs.
C) A decrease in government spending causes an increase in short-run aggregate supply, which leads to higher output and more jobs.
D) An increase in taxes causes a decrease in aggregate demand, which leads to lower output and more jobs.