What is the government's use of taxation and spending policy to affect economic growth in the United States?

Question

Quizplus · Accepted Answer

The government uses its taxation and spending policy, known as fiscal policy, to either stimulate or slow down economic growth. They do this by either increasing government spending or reducing taxes (referred to as expansionary policy) to stimulate growth, or by decreasing spending or increasing taxes (known as contractionary policy) to slow down growth. The government can also use fiscal policy to address other economic issues, such as inflation or unemployment.

What Is the Government's Use of Taxation and Spending Policy