Answer:
C). Government spending to strengthen the economy.
Explanation:
Fiscal policy is demonstrated as the governmental policy that primarily intends to keep a check on the nation's economy and maintain its equilibrium by modifying its expenditure and taxation.
As per the question, the aspect of fiscal policy reflected by the given diagram would be 'government's spending or expenditure' in order to boost the economy. Such expenditures are incurred by the government during recession to give people work and increase the supply of money in the market. This would help activate the depressed economy and bring it to track. Thus, option C is the correct answer.
