The Objective of an Expansionary Fiscal Policy Is to

question 19

Multiple Choice

The objective of an expansionary fiscal policy is to

• A) reduce unemployment.
• B) reduce inflation.
• C) reduce growth in output.
• D) reduce growth in international trade.

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Definitions:

Elasticity Coefficient

Refers to a numerical measurement of how responsive an economic variable is to a change in another variable.

Supply Elastic

Relates to how much the quantity supplied of a good changes in response to changes in its price.

Recession

An economic downturn marked by a significant decline in activity across the economy, lasting more than a few months.

Demand Decline

A situation where the desire or willingness of consumers to purchase a particular good or service decreases over time.