An expansionary fiscal policy
I. includes an increase in government spending.
II. includes tax cuts.
III. increases a government budget deficit or reduces a government budget surplus.
A) I, II, and III
B) I and II only
C) I and III only
D) II and III only
Ans: A) I, II, and III
Economics
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The portion of unemployment that is attributable to an overall decline in the economy's business activity is called: a. frictional unemployment. b. underemployment
c. cyclical unemployment. d. structural unemployment.
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