Recently the government implemented an expansionary fiscal policy, increasing economic activity and consumer's confidence. What are the effects of this on output and interest rateA.Increase in both output and interest ratesB.Decrease in both output and interest rateC.Increase in output and decrease in interest ratesD.Decrease in outputs and increase in interest rates

How does expansionary fiscal policy generally impact economic activity?Question 6Answera.Stimulates economic activity through increased government spendingb.Reduces economic activity and output levelsc.Has no impact on economic activityd.Lowers government debt

The importance of expansionary fiscal policy lies in its ability to:  A. Boost economic activity and reduce unemployment during a downturn  B. Stabilize prices and prevent inflation  C. Encourage private investment and entrepreneurship  D. Increase government revenue through higher taxes

According to the short-run Phillips curve, an expansionary fiscal policy will result inElimination ToolSelect one answerAa decrease in the unemployment rate as a result of the money supply increasing.Ban increase in the inflation rate and a decrease in the unemployment rate.Can increase in both the inflation rate and the unemployment rate.Da decrease in the inflation rate and an increase in the unemployment rate.Ea decrease in both unemployment and prices.

Contractionary fiscal policy will cause gross domestic product to _____ and the interest rate to _____.decrease; increasedecrease; decreaseincrease; increaseincrease; decrease

uppose there is a policy mix of expansionary monetary policy and expansionary fiscal policy. This combination of policies must cause:Group of answer choicesan increase in the interest rate (i)a reduction in ian increase in output (Y)a reduction in Y