Which of the following best evaluates why the government might use expansionary fiscal policy
during a recessionary economic period? (1 point)
In expansionary fiscal policy, government tries to cool down an overstimulated economy that is
suffering from inflation.
In expansionary fiscal policy, government increases spending to generate demand to decrease
GDP.
In expansionary fiscal policy, government cuts taxes to generate spending by increasing people's income and raising GDP.
In expansionary fiscal policy, government decreases its spending to reduce national debt in order to raise GDP.