What does fiscal stimulus aim to achieve?

Fiscal stimulus aims to boost economic activity during a recession by increasing government spending or lowering taxes to stimulate demand. During economic downturns, consumer and business spending tends to decline, leading to reduced economic activity and potentially further recession. The government can step in by increasing its expenditures on public projects, providing financial support to businesses, or distributing direct payments to individuals. This injection of funds is intended to encourage spending across various sectors, create jobs, and ultimately spur growth to help the economy recover from recessionary conditions.

Options related to military spending, decreasing consumer spending, or balancing the national budget do not align with the primary goal of fiscal stimulus, which is focused on revitalizing economic activity rather than constricting it or ensuring budgetary balance.