Fiscal Stimulus Is

Multiple Choice

Fiscal stimulus is:

A) expansionary fiscal policy, such as increases in government spending and tax cuts designed to reduce unemployment and increase output.
B) expansionary fiscal policy, such as increases in government spending and tax cuts designed to increase unemployment and decrease output.
C) contractionary fiscal policy, such as decreases in government spending and tax increases designed to reduce budget deficits.
D) contractionary fiscal policy, such as decreases in government spending and tax increases designed to increase budget deficits.