Which of the following is NOT a characteristic of expansionary fiscal policy?

Expansionary fiscal policy is a strategy used by governments to stimulate the economy during periods of recession or economic downturn. This type of policy generally involves increasing government spending and decreasing taxes to encourage consumer spending and investment.

Increased government spending injects money directly into the economy, potentially leading to job creation and increased demand for goods and services. Decreased taxes leave households and businesses with more disposable income, which can also spur consumption and investment. Furthermore, one of the primary goals of expansionary fiscal policy is to stimulate economic growth, helping to recover from downturns.

The characteristic of increased unemployment rates contradicts the objectives of expansionary fiscal policy. Typically, when expansionary measures are effective, unemployment rates are expected to decrease as businesses expand and hire more workers in response to increased demand. Therefore, the presence of increased unemployment rates does not align with the intended outcomes of expansionary fiscal policies.