<xsl:output method="xml"> and an if sentence to output

Below is my XSLT file.
I'd like to use <xsl:output method="xml">, but I haven't found a
solution to my problem, which is how to output <dd class="active"> if
parameter this exists and <dd> if it doesn't exist.

I would appreciate any help.
Thanks,
Jacob

<?xml version='1.0'?>
<xsl:stylesheet version="1.0"
xmlns:xsl="http://www.w3.org/1999/XSL/Transform">
<xsl:output method="text" encoding="iso-8859-1"
omit-xml-declaration="yes" standalone="no" indent="no" />

<xsl:template match="/">
	<xsl:for-each select="/opml/body/outline">
		<xsl:call-template name="outline">
			<xsl:with-param name="title"><xsl:value-of select="@title"
/></xsl:with-param>
		</xsl:call-template>
	</xsl:for-each>
</xsl:template>

<xsl:template name="outline">
	<xsl:param name="title" />
	<xsl:text>&lt;dl&gt;</xsl:text>
		<xsl:text>&lt;dt&gt;</xsl:text>
		<xsl:value-of select="$title" />
		<xsl:text>&lt;/dt&gt;</xsl:text>
		<xsl:for-each select="outline">
			<xsl:choose>
				<xsl:when test="@this">&lt;dd class="active"&gt;</xsl:when>
				<xsl:otherwise>&lt;dd&gt;</xsl:otherwise>
			</xsl:choose>
			<xsl:text>&lt;a href="</xsl:text>
			<xsl:value-of select="@url" />
			<xsl:text>"&gt;</xsl:text>
			<xsl:value-of select="@title" />
			<xsl:text>&lt;/a&gt;</xsl:text>
			<xsl:text>&lt;/dd&gt;</xsl:text>
		</xsl:for-each>
	<xsl:text>&lt;dl&gt;</xsl:text>
</xsl:template>

</xsl:stylesheet>