Question

A) policy is designed to shift the aggregate B) curve by the federal government changing its C) and D) policies. An E) fiscal policy would attempt to speed up the economy by shifting this curve to the F) . This would be accomplished by the government spending G) than it took received in taxes. Such a policy would result in a budgetary H) . Such a policy would be employed to get the economy out of a I) and fight the undesirable economic phenomenon of J) .

Answer 1

A

Fiscal

B

Demand

C

Government spending

D

Taxation

E

Expansionary

F

Right

G

Done

H

Deficit

I

Recession

J

Unemployment                   

The federal government applies expansionary fiscal policy by applying government spending and decrease in the taxation to increase the aggregate demand. It causes the firms to create supply. While doing so, the new jobs are also created. As a result, rconomy comes out of the recession and unemployment level is decreased.