Which of the following are true- a) When government is trying to increase output and employment it will end up having a fiscal surplus. b) Government spending directly affects total spending whereas taxes enter the multiplier process through their impact on disposable income. c) The deliberate action to stabilise the economy is often referred to as discretionary fiscal policy.

a, b and c a and b b and c a and c

b and c

When government is trying to increase output and employment it will end up having a fiscal deficit as its spending would increased. Making a larger gap between receipts and expenditures.