When the government deliberately alters its level of spending and/or taxes in order to achieve specific national economic goals, it is exercising

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Discretionary fiscal policy involves deliberate changes in government spending and taxation to influence economic goals, such as stabilizing the economy during a recession or promoting long-term economic growth. Monetary policy involves changes in the money supply and interest rates to achieve economic goals. Automatic government budgetary policy involves automatic changes in government spending and taxation based on fluctuations in the economy. A laissez-faire policy emphasizes minimal government intervention in economic affairs.

When the Government Deliberately Alters Its Level of Spending And/or