24Fiscal PolicyMedium1 markIn which situation is expansionary fiscal policy through increased government expenditure likely to be most effective in increasing employment in an economy?AWhen the AD curve cuts the horizontal part of the AS curve.BWhen the AD curve cuts the vertical part of the AS curve.CWhen the government also raises tax to fund its increased expenditure.DWhen the government injects a large amount of spending into the economy.Grade answerSolutionGrading criteria