Question content area

Part $1$

Select the answer below that best corrects the following$$ statement:

$"$An expansionary

fiscal policy

LOADING...

involves an increase in government purchases or an increase in$$ taxes."

Part $2$

A$.$

An expansionary fiscal policy involves the decrease of government purchases$$ and$/$or an increase in taxes in order to increase aggregate demand.

B$.$

A contractionary fiscal policy involves the increase of government purchases$$ and$/$or an increase in taxes in order to decrease aggregate demand.

C$.$

An expansionary fiscal policy involves the increase of government purchases$$ and$/$or a decrease in taxes in order to increase aggregate demand.

D$.$

A contractionary fiscal policy involves the decrease of government purchases$$ and$/$or a decrease in taxes in order to decrease aggregate demand.

Part $3$

Select the answer below that best corrects the following$$ statement:

$"$A contractionary fiscal policy involves a decrease in government purchases or a decrease in$$ taxes."

Part $4$

A$.$

A contractionary fiscal policy involves the decrease of government purchases$$ and$/$or an increase in taxes in order to decrease aggregate demand.

B$.$

A contractionary fiscal policy involves the increase of government purchases$$ and$/$or a decrease in taxes in order to decrease aggregate demand.

C$.$

An expansionary fiscal policy involves the decrease of government purchases$$ and$/$or a decrease in taxes in order to increase aggregate demand.

D$.$

An expansionary fiscal policy involves the increase of government purchases$$ and$/$or an increase in taxes in order to decrease aggregate demand.

$""$