QuestionDecember 14, 2025

The application of fiscal policy to increase aggregate demand is called square fiscal policy.

The application of fiscal policy to increase aggregate demand is called square fiscal policy.
The application of fiscal policy to increase aggregate demand is called square  fiscal policy.

Solution
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Answer

Expansionary Explanation 1. Identify the type of fiscal policy Increasing aggregate demand means using expansionary measures such as higher government spending or lower taxes. 2. Apply the definition Fiscal policy aimed at boosting economic activity is called expansionary fiscal policy.

Explanation

1. Identify the type of fiscal policy <br /> Increasing aggregate demand means using expansionary measures such as higher government spending or lower taxes. <br />2. Apply the definition <br /> Fiscal policy aimed at boosting economic activity is called expansionary fiscal policy.
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