Increasing government spending to try to reduce unemployment is an example of fiscal policy.
What is the goal of expansionary fiscal policy?
The expansionary fiscal policy is been put in place so as to be able to reduce unemployment in a particular country.
This is been done by making an increase in government spending as well as a decrease in taxes and the curve will shift right increasing real GDP .
In this case, Increasing government spending to try to reduce unemployment is an example of fiscal policy.
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