An expansionary fiscal policy is usually employed by the government to a. shift the short-run aggregate supply curve rightward b. close a recessionary gap in an economy c. close an expansionary gap in an economy O d. shift the short-run aggregate supply curve leftward

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Fiscal Policy and Money Market

Fiscal policy is one of the important tools that is used by the government to control inflation or aggregate demand in the economy. Under this policy, there are two rules which are used by the government, one is the expenditure of the government and the other is the taxation or income of the government which it collects from the public.