The government can use in the form of to increase the level of aggregate demand in the economy. a contractionary fiscal policy; a reduction in taxes an expansionary fiscal policy; an increase in corporate taxes an expansionary fiscal policy; an increase in government spending previousnext

The government can use an expansionary fiscal policy in the form of an increase in government spending. An expansionary fiscal policy is exactly what it sounds like: it is a way to expand spending money. Here, we are discussing how the government can use a way to expand the amount of free money they have liquid. This can be done by actually putting more money back into the economy via government spending.

Yes it is why ..