Question

SRAS, OECD Lifts Global Growth Forecasts on Expected Trump Stimulus Source: Deen, Mark "OECD Lifts Global Growth Forecasts on Expected Trump Stimulus" Bloomberg.com, posted 11/28/2016. Carefully read the article, if the article is no longer available, click here to read a synopsis, and then answer the following questions. Fiscal stimulus can take the form of increased government spending or a decrease in taxes. Price level Which of these is an example of fiscal stimulus? O A higher levels of business expansion O B . governments building transportation infrastructure c. a central bank increasing the money supply OD. None of the above. A. Real GDP

Answer 1

Fiscal stimulus can take the form of increased government spending or a decrease in taxes.

Governments building transport infrastructure is the correct option as the goverment is increasing its expenditure by doing so.